Why renovating your house BEFORE selling could cost you a lot of $$$!!!
If I had a nickel for every time I heard a seller say they wanted to renovate their house before they sell, well, I’d have a lot of nickels!
Ask any appraiser and they will tell you that getting all your money back in home value after doing home renovations is not always a given. In fact, you can actually lose a lot of money! There are some improvements that will virtually never provide the value you spent on them, such as installing a pool. And, even though having a renovated kitchen or bathroom would absolutely add value to your home and help it sell faster, it really doesn’t make sense to spend a lot of money and maybe (or maybe not) get that money back in a higher sales price. It is a gamble and I don’t recommend it.
Here’s what I do recommend you do, if you are so inclined and are willing to spend some money to get the most value out of your home sale: Paint, paint, paint! This is the cheapest way to get the biggest improvement. If you can do it yourself and actually do a good job, do it, but if it’s going to look sloppy, it could actually COST YOU MONEY because the buyers walking through your home are going to wonder what else wasn’t done professionally.
Another less expensive option would be to update the décor hanging on the walls. I would recommend thrift stores, or other discount stores like Ross, T.J. Maxx or even Walmart for inexpensive wall art. If you have time, garage sales could be a great option. While you’re at the discount stores scouting for neutral wall art, see what you can pick up in the way of neutral bedding and curtains as well.
A thorough cleaning and decluttering both inside and out will also help your house value. If you have time and a bit more money to invest, new flooring could make a massive difference, although you should talk with your agent prior to investing in this to ensure you’ll get your money back and then some. With flooring, it’s possible to get a return on your investment, especially if you have old carpets throughout the house that drag the house value way down.
As far as kitchens and bathrooms, typically they require too much money and time and are a gamble on whether or not you’ll actually get back all the value you put in, but you absolutely can and should do small updates, like changing out cabinet/drawer pulls to something more modern (if they’re dated). You could also consider refacing your kitchen cabinets or having a professional paint them to update the look for thousands less than replacing them.
In the bathrooms I would consider replacing the mirrors to something modern and current and potentially replacing the vanity (if time and money allow). These fixes are pretty low cost and can have a big impact. Each situation is different and you need to decide what is best for you and your situation. Are you in a time crunch to sell or do you have some time and money to do a few of the above suggestions? At the least, I would recommend thoroughly cleaning (including carpets) and decluttering. Start to pack and box up your least used items to help your home feel more open and airy to buyers.
You can do a little or a lot, it really depends on your personal situation! If you’re not sure what you can/should do, talk to your real estate agent and ask for some help in deciding what to do to get the house ready to sell. They should know the market and trends in your area very well and should be able to offer the best and most up-to-date guidance to you!