Are renovations needed to sell your home? Here’s what you should consider.

Once you’ve finally made the decision to sell your home, there are several more difficult decisions to be made. For one thing, preparing your existing residence to be “sellable” can almost seem like a full-time job. Regardless of the state of your home, there is a fair amount of work you should do before it’s ready to be placed on the market.

You could look to renovate an entire kitchen or simply touch up some of the walls with a fresh coat of paint. Whatever your eventual choice might be, it is essential to evaluate your options and determine if they will be worth the time and money.

What will renovations cost me?

Renovations not only cost money but also take a considerable amount of time. Both of these factors should be weighed into your opportunity cost before deciding to undergo them. It’s important to remember that selling your home is already likely to cost you a fair amount. Between moving, closing, the deposit on your new residence and other fees, you want to make sure that this additional expense will be worth it.

Since a return on investment is not guaranteed, if you don’t have a reasonable nest egg tucked away, you’ll want to ask yourself if you can really afford to invest in renovations. Give yourself a budget for how much you want to spend and be sure to add in a bit extra, since renovations rarely run what they are typically quoted at.

Will I improve my ROI?

In many cases, a newly-renovated home will receive a higher value or price on the market. However, this is not always the case. Before you start tearing down wallpaper and knocking down walls, be sure that your renovations are being done to appeal to a wide range of buyers rather than limiting your potential market. This will largely be based on the other homes in your neighborhood.

If your property is already considered to be on the high-end in the neighborhood, new renovations might push out potential buyers who will not be able to afford it with the added investments. Thus, if your home is already of higher stature than other homes in the area, try rearranging instead of renovating. This includes changing up furniture, purchasing new accessories, doing minor touch-ups, and having the house undergo a deep cleaning. You can find other budget-friendly tips here.

What else do I need to factor in?

A major factor to take into consideration is the current condition of your local real estate market, as well as its projected future. You should do a serious market survey to compare your home to what else exists on your street and in the area. This is why choosing a local real estate agent with experience of the neighborhood is so important. Homes in your community that are comparable to yours should be the standard to which you hold your property. If these residences have features that yours doesn’t, then you may consider renovations.

The cost of improving your home before selling needs to result in a measurable return on that investment. However, that is not always something that can be guaranteed. A good Realtor who has experience in the space and the community should be able to assist you in the different renovation options you have at various price points in order to determine the best decision.

With years of experience in the Southwest Florida area, Dante Disabato is well versed in your local competition and the state of the market overall. Contact us today at 239.537.5351 or through our online form for a free assessment of your home.

This material is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. These offerings are subject to errors, omissions, prior sales, changes, including but not restricted to, price or withdrawal without notice. A buyer should be represented by legal counsel and have a professional inspection and a survey of the property certified to the buyer to verify information contained herein and all other information upon which a buyer may intend to rely. William Raveis Real Estate.