Anyone who has previously or is in the process of selling their home knows that one of the primary challenges is deciding how much is wise to invest in renovations before attempting to sell.
In the interest of making as much profit as possible, you have to know what investments in the house will reap rewards when it sells and which will cost you but won’t ultimately boost the value of your home as whole.
Here are some things to keep in mind as you tackle that challenge:
Consider the Rooms That Matter Most
If you’re about to sell, and you’re considering what needs to change, there are two rooms that matter most to potential home buyers.
According to Forbes, “The two most closely inspected and anticipated rooms of a house are the kitchen and master bathroom. They’re the interior spaces where the most value can be added during a sale, so they need to look their best.”
If you’ve got a limited budget to work with and are pressed for time, you’re going to get the most bang for your buck by targeting these two rooms.
In the kitchen: One of the best things about the kitchen is that there are relatively cost-effective ways it can be upgraded without having to replace the components as a whole. New paint on the walls and cabinets and new hardware for cabinets are low-labor jobs that can completely revitalize a dated kitchen.
You can consider how much more you’re willing to invest in relation to new appliances, light fixtures, etc.
In the master bath: The master bath is a more difficult component to replace, because most of the upgrades that are going to make sense are also going to require a skilled tradesman to accomplish.
However, it’s also true that we live in the golden age of home DIY projects. If you’re interested in pursuing the most cost-effective option for your budget, there are guides that you can utilize so you can do the job yourself.
Know Your Target Buyer
Much as a business orients everything towards their target audience, savvy home sellers do what they can to ensure they understand who their target buyer is, and what will appeal to that demographic.
In relation to home renovations, you want to invest in ones you know are going to appeal to potential buyers who will look at your home. Research what other homes in similar neighborhoods are highlighting as their strengths. Look at what design elements houses of the same general value level favor. If there is a clear trend your home lacks, that is likely a smart renovation to tackle.
Additionally, there are small things you can change within your home so that buyers across the board will view your home in a favorable light.
Home selling experts note, “Home staging is one of the most powerful ways to make buyers want to buy your home. It can be as simple as decluttering and repainting. Or it can require a clean sweep that involves storing belongings off-site; redecorating, and even renting furniture and art to make your place show well.”
Even if your home is completely updated, if it’s so cluttered or dirty that it is unwelcoming and off-putting to those who view it, it either won’t sell or you’re going to have a difficult time convincing individuals it’s worth your asking price.
Don’t Overdo Your Renovation
While the challenge is often commiting to a renovation budget that won’t leave your bank account completely drained, there are times when the temptation is the opposite. If you overdo renovations, and your home evolves so that it is out of place in your neighborhood, it’s likely you’re wasting unnecessary funds and energy.
The goal is for your home to look as good as it can, but if you fail to create a space that fits your target buyer, your resources will have been wasted. It’s important that the creation of a workable budget coincides with your planning.
“After you have your to-do list and your rough estimates, start building a budget. Now, if you have a budget already set due to an amount you have saved, this is still an important part of the process so that you make sure what you want to do fits within your budget … Make sure you include everything you possibly can in your budget. That includes contractor fees, materials, inspection fees, truck or trailer rentals for hauling, tool rentals, etc.,” writes moving expert Madison Wetherill.
A budget is your first and last line of defense in terms of keeping your finances on track. The more detailed you make your budget, the more effective it will be. There is no expense too small to be included and tracked. A smart way to ensure you stick to your budget is to give your renovation funds their own account.
Selling a home often comes with a load of stress. The challenge is take a space you’ve lived in and alter it in such a way that others not only can visualize living there themselves but truly want to. You want them to see how your current home could be their future haven.
To successfully make choices about the scope of home renovations to tackle before selling your house, you must assess what renovations make the most sense and how those renovations match the resources you have available. That approach is the smartest way to get a rewarding price for your house that will benefit your family long after you find a new home.