It’s always recommended that you do some work on your home before you sell it. Getting the house in shape will make it more attractive to buyers and you can fix any maintenance issues that might put people off. But if you’re going to move out, is it really sensible to spend loads of money on the house?
This is the dilemma that a lot of people find themselves in and they don’t know whether they will recoup the investment that they make on the house when they sell. So, how much money should you spend on your home before you sell it?
There are a lot of people out there that will tell you it’s absolutely necessary to make upgrades to your home before you sell but that isn’t the case. If you are looking to move quickly and you don’t have much money to invest in the house, you might be wondering, are there ways to Sell My Home as is and still get a good price? The short answer is, yes, there are some great companies that will give you a quick cash offer on your home. There are also buyers that are willing to do work on a new property so they won’t be too concerned if it’s a bit rough around the edges. Even though you will have to set the asking price a bit lower, you won’t be spending anything on the house, so it evens itself out in most cases.
If you do want to do any work on your home, you need to consider the return on investment. Making desirable upgrades to your home means that you’re more likely to get offers. When there is a lot of competition for the house, you can encourage a bidding war and drive the price up. However, certain renovations are very expensive and so the cost outweighs the benefit. For example, the kitchen is one of the most important rooms in the house for many buyers and if you give it a fresh coat of paint and change the cupboards, you can expect a return of roughly 80%. But if you rip the whole kitchen out and replace it, the average return will only be about 50% because you’re spending a lot more upfront.
Before you do anything to your home, think about how important it is to buyers and whether it will really drive the price up that much. There are some great ways to get your home ready to sell on a budget, without spending money on big renovations, so you should focus on that instead of making expensive upgrades.
You might decide that a big kitchen renovation or a new bathroom isn’t worth it, but if there are any big maintenance problems, you should deal with those. If you are marketing the house as a fixer-upper and you are willing to take a lower price for it, you can leave it. However, if you want to get a good price for your home, you need to make sure that it’s liveable. Potential buyers won’t mind if some rooms need a coat of paint but they will mind if there’s a big hole in the roof. Even if you don’t make any other upgrades, you should always deal with any major maintenance problems that could make the home unsafe. It’s worth getting a survey done on the house before you put it on the market so you don’t miss anything.
If you aren’t sure how much work to do on your home, check out some other properties in the local area. You might find that everybody else is putting brand new kitchens and bathrooms in their homes and decorating throughout before they put them on the market. If you don’t modernize your home, you won’t be able to keep up with the competition and you’ll struggle to get any offers on your home. However, if most of the properties in the surrounding area are a bit run down, you don’t need to spend lots of money on renovations to get your home noticed. That doesn’t necessarily mean you have to follow exactly what everybody else is doing, but looking at the competition can give you a sense of how much you should spend on your home.
There is no right answer here and you should always consider how much you can realistically afford to spend on your home before you sell. However, if you follow these steps, you can find the right balance.