For those who have been living in their home for years, one question that usually comes up is:
What should I renovate before selling?
In order to get the most profit from the sale of your property, you need to prep your home in order to make it appealing to as many buyers as possible. But that doesn’t always mean you should take on remodeling jobs before listing.
Consider the Market
Before you decide what home projects to work on, consider the type of market in your local area. In a seller’s market like the one we are currently experiencing, there are a plethora of buyers and not enough homes for sale. Buyers are more willing to overlook minor repair needs during competitive markets, so you may not need to do as much to get your home ready.
If selling in a buyer’s market, when properties are moving at a slower pace, you’ll want to make sure your home stands out. In this case, renovations may be needed to catch the eyes of potential buyers.
Consider the Resale Value
As a seller, you should also think about what home renovations will give you the most resale value. No matter what renovation project you take on, you are unlikely to recoup the full cost when you sell.
Take a look at the resale value for common renovation projects, from Remodeling’s 2020 Cost Vs Value Report:
|Garage Door Replacement||94.5%|
|Minor Kitchen Remodel | Midrange||77.6%|
|Siding Replacement | Fiber Cement||77.6%|
|Siding Replacement | Vinyl||74.7%|
|Window Replacement | Vinyl||72.3%|
|Deck Addition | Wood||72.1%|
|Deck Addition | Composite||66.8%|
|Roofing Replacement | Asphalt Shingles||65.9%|
|Bath Remodel | Midrange||64%|
|Major Kitchen Remodel | Midrange||58.6%|
|Master Suite Addition | Midrange||58.5%|
|Bathroom Addition | Midrange||54%|
As you can see, most projects fall under a 78% recoup value, which means larger projects may not be worth it to take on if you plan to sell in the near future.
No matter the circumstances, you should make your home look its best! Do a deep cleaning, stage your home for photos and showings, and discuss with your real estate agent how to present your home in its best light.