You’ve decided to sell your home, so should you renovate or sell your home as is? As with all decisions, there are pros and cons to each choice. If you choose to renovate your home, it will most likely sell for a higher price and faster, but remodeling projects can be costly. And, some don’t have a high return on investment. If you choose to sell your house as is, you save money in the short term but you could miss out on making more money on the sale of your home. It’s important to understand the factors involved and work with your real estate agent.
Home Remodel Cost Analysis
One of the most important factors is the cost of home remodeling projects. First, how much are you willing to spend? Second, can you expect a decent ROI when you sell your home? Thankfully, you don’t have to figure this out on your own. Your local real estate agent is a great resource and should be an expert on the local market. It’s their job to evaluate your home and to know which remodels are most beneficial in your area.
Doing A Home Remodel
If you decide to move forward with renovations, the next decision to make is whether you can DIY or if you need to hire a contractor. If you are qualified, can you dedicate the time required to finish the project within your home sale timeline? While hiring a contractor costs more, it may be worthwhile. You may want the peace of mind of working with a professional, especially for highly technical projects.
According to the Remodeling 2022 Cost vs. Value Report, on average, homeowners paid approximately $27,000 for a midrange bathroom remodel and it had a 58.9% ROI. For a minor kitchen remodel nationwide, they paid about $28,000 and it had a 71.2% ROI. These numbers indicate that you can recover more than half to a third of your costs. For your home, simpler upgrades that increase your home’s value may be better. Consider painting kitchen cabinets, refinishing hardwood floors, or installing new bathroom tile. After you’ve updated or renovated, your agent can help determine the price of your home.
Selling Your Home As Is
If you decide not to remodel your home, you may ultimately sell your home for less. But you won’t have to deal with the costs and headaches that come with renovations. Plus, remodeling a home you are about to sell means you won’t get to enjoy any of the upgraded benefits. Where’s the fun in that? Lastly, choosing not to remodel or make any upgrades will impact what you get for your home and your home-buying budget. It’s important to remember the costs of buying a new home.
Local market conditions are another factor to consider when deciding whether to renovate or sell your home as is. In a seller’s market, you most likely will still be able to sell your home for a great price without investing time and money into remodeling. Due to strong demand and limited supply, high competition among buyers will drive up prices. However, you’ll still have to take steps to prepare like making necessary repairs. And, staging your home gives buyers a great first impression and helps them easily imagine themselves in the space. That being said, sometimes certain projects like adding stone veneer to your home’s exterior (119.5% recouped at resale) or replacing your garage door (117% recouped at resale) can really increase the value of your home.
Here in Kitsap County, we still have a seller’s market. Though we are seeing a shift in the market, there are still serious buyers. Watch our video below to see our 3rd quarter market stats.
If you’re still not sure what to do and you’re not working within a tight timeline, you could wait. This will give you more time to weigh your options and prepare for a future sale. With more time, you’ll be able to plan for any needed projects at a more relaxed pace.
When deciding whether to renovate or sell your home as is, Windermere Kingston has highly rated, experienced local real estate experts available to help. Take some of the pressure off and contact us today.