Improving Property Value

Should I Renovate My Home Before Selling It?

By May 1, 2022 No Comments

This is a very common question I get from home owners considering selling, especially if their home is not shiny and new and has not had an extensive renovation in the last few years.

Ultimately the question goes to whether it’s worth investing the money and time to do a major renovation, with the goal of increasing the final sale price significantly enough to make it worth doing.

At the end of the day, the answer to this question is going to vary from home to home AND from homeowner to homeowner.

I always invite potential sellers to let me look at their property first before giving them specific advice, but at the end of the day, there’s an answer I tend to give everyone upfront when I have not seen their property and discussed their reasons for selling yet.

I share that answer in this video in the hopes that it will help you get some clarity on the topic, but of course, you are far better off having me look at your property in person before giving you advice on what to do.

This video segment was pulled from a long interview I did back in Feb 2022, where I answered a heap of frequently asked questions (FAQ) about real estate.

Once you’ve watched the video, let me know your thoughts and any extra questions you have on the topic in the comments below.

Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.

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Transcript:

A lot of that is going to come down to the market conditions of the day.

And potentially the price goal that you are hoping to achieve.

So in a certain marketplace, in certain market conditions, in certain locations, there may be certain upgrades that are going to be expected by the buyers at a certain price point.

If you are chasing that price point, you may then have to look at what it’s going to cost to invest into the renovation that you would need to do.

But you have to weigh up what that return is really going to be.

So as a general rule of thumb, if we’re recommending that you do some sort of, what I would call major renovations to your property, I need to know that I can confidently tell you that you are going to get that money twice back for doing it, because you have to do it, you have to outlay the money, and you have to live through it.

And it’s not fun!

So there has to be a genuine reason for doing it.

Quite often when we are going to market, and people are saying, should I do the kitchen?

Should I do this?

Sometimes we just need to polish what we have.

More often than not, elbow grease and little bit of effort and some planning will pay off just as much, if not more, when you look at dollar for dollar of what you’ve actually outlaid to what you get back.

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