Renovating Before Relocating

Halo Group Real Estate Advisors Blog

Every seller wants to achieve the highest possible sale price for their home. Making a good first impression and showcasing a high-quality property are critical.  In order to compete with similar properties on the market, renovations can be a useful tool.

In many cases, renovating your home may be the best way to get it back in shape for the highest rate of return. Here are the advantages and drawbacks of renovating right before selling so that you can make an informed decision.

The Pros

Reduce Buyer Objections

When potential buyers visit a home, it’s only natural to look for reasons they shouldn’t buy. This might include little things that are pretty easy to fix; however, little things can add up. The buyer may perceive a few shortfalls in your property in a negative light, and even as an indication of future maintenance costs. You can ensure your house shines immediately by addressing these concerns with modest renovations, repairs, and improvements.

A few of the common issues that you can address include:

I. Cracks in walls

II. Outdated decor

III. Broken/damaged doors, windows, walls, and fixtures

IV. Overgrown gardens

Make a list of all the things you could repair quickly and inexpensively – fixing these flaws will prevent them from becoming an eyesore at open houses.

Increase Value

There’s a reason why many property investors purchase run-down properties to restore and “flip” – because they may quickly sell them for a hefty profit. Some houses, particularly those that have not been updated or renovated in many years, are ideal candidates for a value-added makeover.

The following are the projects that provide the best return on investment, how much you will recover after renovation expenses, and how long it will take to recoup your money. Cost estimates come from the Home Advisor’s true cost guide;

  • Kitchen renovation: The average cost of a kitchen redesign ranges from $13,476 to $38,203, and homeowners recover 77.6% of the money spent. (Timeline: 6 weeks)

  • Bathroom renovation: The typical cost of a mid-range bath renovation is $21,377, with homeowners recouping 64% of the price. (Timeline: 4 weeks).

  • Flooring: Ranges from $6 to $10 per square foot, and homeowners recover between 70 percent and 80 percent of the cost of new hardwood floors, an average of $1,510 to $4,650 professionally installed (Timeline: varies by the size of the project).

  • Repaint: On average, hiring a professional to paint the inside of a space costs $950 and can provide a 107% return on investment. The cost of painting the entire interior of your house is usually between $2,909 and $5,895. On average, painting the outside of your property costs between $1,770 and $4,344, with an ROI ranging from 55% to 65%. DIYers can save big on repainting. (Timeline: depends on the size of the project).

  • Finished Basement: On average, completing a basement will cost between $12,222 and $33,239, but it can cost up to $34,000, depending on your square footage and plans for the space. You may recoup as much as 70% of your expenditure (Timeline: 9 weeks).

As you can see, some of these projects are better suited for when you will be living in the home for long enough to enjoy these renovations. However, painting, for example, is one of the most cost-effective and value-adding.

The Cons

Time-Consuming

Extra time allocated to renovate your house may not be an option if you need to sell it as quickly as possible. While some quick cosmetic repairs may take a few days, anything more substantial might require weeks or months. The local real estate market may shift during this time – for the better or worse – which can affect whether or not you ultimately make a profit on your sale. Consider easy ‘renovations’ such as a fresh coat of paint, and fixing any broken or unsightly items in the home.

Costliness

Not all repairs are costly, but a decent sum of money may be required even if you’re on a budget. For those who don’t have the cash to renovate or make improvements, simply making the property as good as possible with DIY work can make a significant impact.

Make sure you know exactly what you’re willing to spend ahead of time and be ready to only improve on the areas that most need it.

Conclusion

The decision to renovate should be based on your timeline, market, budget, and sale intent. If you’re still on the fence, consult with our team for honest advice and help every step of the way.