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August 19, 2019

Should I Remodel My House Before Listing It?

Should I Remodel My House Before Listing It? 1

If you've lived in your home for more than a few years, styles have likley changed.  In the last ten years I've seen paint colors go from darker earth tones to lighter greys, I've seen farmhouse be popular, then go to modern and now settling into "modern farmhouse", which I'm pretty sure is a brand new style.  If you're thinking of selling your home, you may be wondering if you need to update your home.  While there is no simple answer, there is still a way to determine if you should or should not remodel prior to listing.  There are many factors involved, such as the condition of your home, how many similar homes are listed in your market, and what the potential sales prices will be with and without making updates.

Think about the buyer pool

The phrase "fixer upper" might be what some buyers are looking for.  Maybe they're looking for a deal, or are looking for something they can personalize, or maybe they can't afford to buy something that is move-in ready.  Your agent's marketing will help draw in the right buyers for your home.

Does your home need a LOT of work?  This can be a very time intensive and costly process to get it into a move-in ready and in style condition.  It is even more costly and time intensive for people who work a regular job and don't have the connections to hire the right people to do the work.  In cases like this, getting a fast all-cash no hassle offer from an investor or home flipper, might be your best solution.  You get your money and can move on to your next home quicker and if you use our investors, you don't have to worry about them nickle and diming you with inspections and lowering their offer mid-escrow.

This also has the added benefit of putting the risks involved in remodeling for resale onto someone else.

A good rule of thumb is iff your home needs it's kitchen and/or bathrooms remodeled, or maybe it needs a new roof, or has foundation issues, there is a good chance that you may need to sell to an investor.

Set a realistic price

There are a lot of factors that go into pricing your home.  Working with a professional real estate agent or Broker will help you set the best price.  In general, homes that are "move-in ready" are far more popular with buyers than homes that need work and buyers are willing to pay a premium for them.  You also have to consider the other homes in the neighborhood and what else is on the market that people can buy.  You may need to set a much lower price to capture the buyer that is willing to do the work.

Maybe your home just needs some minor updates and the cost of them will be recouped and add additional value to your property.  Working with an experienced real estate agent/Broker with experience in remodeling homes, like we offer as part of our services at Huggins Homes, can help you make modifications that are on point with today's styles.

Spend your money wisely

While you may be thinking that you'll need to spend $20,000+ on a kitchen remodel, you may not have to.  Chances are a full kitchen remodel, without fully remodeling the rest of the house, won't give you the return on investment that you're looking for.  There are, however, a variety of things you can do to spruce up the various rooms in your home.  Items such as changing out light fixtures, a fresh coat of paint, cabinet hardware and replacing older and worn out fixtures are all low cost options you can do to increase the character and desirability of your home.

Make required repairs

One of the best things about selling to investors, is that they generally can look past almost anything.  They're more concerned with what they can do to renovate the home and the potential for profit.  But while an investor may look past that leaky faucet, a regular buyer looking to "score a deal" likely won't.

Items such as roofs, appliances, paint and HVAC systems don't seem like a great place to put one's money, but if a roof or HVAC system is nearing it's end of life, that is a big expense that the buyer may not want to risk having to spend so soon after purchasing the home.  Likewise, if appliances are broken or missing, or paint has peeled off the outside of the home, it could prevent people from getting loans.


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