We typically think about home renovations as projects that we complete to “turn a house into a home.” We do them after we move in, or when we’ve lived in our home for a while, with the goal of making our property something we can fall in love with – a property that fits our personality.
Even those renovations we complete because we have to – roofing, siding, etc. – we still do because we want our house to feel more comfortable, avoid damage, improve energy efficiency, or look more pleasing to the eye.
These upgrades can improve the value of our property considerably, but we typically do them primarily for ourselves, because we do not usually make back all that we invest.
So, what happens if you’re trying to sell your home?
If your home needs upgrades, and you’re trying to sell your property, you might think that this means that it doesn’t make financial sense to complete the renovation. After all, if you won’t recoup 100% of what you spend, then you might – in your mind – lose money on your investment.
But there are many situations in which you want to make a upgrade, even if it means taking a small loss, and it primarily has to do with what happens if your home is not desirable.
The Longer on Market, the Less You Make
We are in a very strange market. Homes are still in extremely high demand, but they are also more expensive than ever with extremely high interest rates. If a home is desirable, it can sell extremely quickly. But if it is not desirable, it can take months and months to sell, and typically will drop in both price and desirability.
People do not even *want* to buy a property that has been on the market for a long time, even if it is otherwise desirable, because they’re worried something is wrong with it.
Now, if your property already looks amazing, and the upgrades are mostly aesthetic, it may make sense to keep them as is. But if your property is falling apart, or far too old, or undesirable in some way, then fixing it can offer:
- Faster Sale – With a faster sale, you can not only sell your property faster but also maintain its value, so you are more likely to get the price you want for your property.
- Over-Value – Not only can you get your property to sell faster, but if it’s highly desirable after the upgrades, your home may be in competitive demand. This may encourage offers above list, helping you cover your investment.
- Reducing Negotiations – Imagine you’re selling a home with damaged siding. Your bidders may use that to negotiate your home lower, and they’ll have leverage.
These renovations are best when the property *needs* the work. If it already looks “nice,” then it’s possible the upgrades may not be necessary – although you can still contact us for a quote and we can see if there are repairs or renovations that might help.
But if your property has damage, or it’s *too* old, or there are other problems that need to be fixed in order to sell, then a renovation is frequently worth it. We can offer fantastic pricing to make sure you’re more likely to get a return on investment, but no matter what there are advantages to making the renovations first before putting your property on the market.
For more information, or for an estimate for any of our services, please contact Christian Construction, today.
