The Best Use of Time (and Money) When It Comes to Renovations
Many homeowners in today's sellers' market ask what, if anything, needs to be remodeled before they offer their home. That's where a reputable real estate agent can help. They can assist you in considering current market conditions and how they affect what you should – and should not – renovate before selling your home.
Here are some things to think about that a professional can help you with:
1. With current supply challenges, buyers may be willing to take on projects of their own.
A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent report by the National Association of Realtors (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory:
“Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May’s 2.5-month supply but down from 3.9 months in June 2020.”
So, what does this imply for you? This is especially essential if you're a seller deciding whether or not to refurbish because it reflects buyer behavior. When there aren't enough homes for sale, buyers may be more likely to buy a house that doesn't fit all of their requirements and then renovate it later.
2. Not every renovation project is the same.
You don't want to waste time and money on a project that isn't worthwhile or is too niche in terms of design for some potential purchasers. According to an article on Renofi.com, updating your home based on current trends can be a costly mistake:
“The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one thats design quality won’t last a good while.”
Consult your real estate advisor before making any decisions. They know what other sellers do before putting their houses on the market and how purchasers react to those upgrades. Don't waste time and money trying to be current; your buyer may always upgrade to the latest fad later.
3. If you've already made improvements this year, your agent can assist you in highlighting them.
You are not alone if you have already made some home improvements. Last year, the pandemic kept people at home, and many homeowners completed home renovation tasks during that period. According to HomeAdvisor's State of Home Spending Report for 2021:
“35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.”
If you fall into this group, let your real estate agent know. They might draw attention to any recent improvements you've made to your home's listing.
When it comes to renovations, your return-on-investment should be top of mind. Let’s connect today to talk through any upgrades you’ve already made and to find out what you should prioritize before you sell to maximize your house’s potential.