To Renovate or Not Before Selling? Believe it or not, this is a question that we are being asked more now than ever. Throughout the COVID-19 Pandemic, we saw more and more people renovating their homes. They were spending more time at home than they ever had before and wanted to make a place that was their own! We completely agree, you spend a lot of time at home and making a place your own is so important. Not only does it make you feel better, but it can be great investment as well. The question is, if you are thinking about selling, should I renovate my home to add increased appeal to potential buyers? The short answer is you really don’t have to right now. However, the long answer is it really depends. There are certain renovations that might add value to your home above what the cost to have the renovation completed is. So before you renovate your home, read further and we will help!
Currently we are in a strong seller’s market, meaning that there is limited inventory and home renovations might not be as vital as they were previously. If you don’t plan on selling your home within a year, then chances are the home renovation might be worth it. After all, you will be living there. There are a couple of things to keep in mind if you are thinking of selling within the near future:
1. There are not enough homes for sale right now
In a normal real estate market, there are typically a 6-month supply of homes for sale. However, today’s market sits far below that benchmark. According to the Canadian Real Estate Association, there is currently only a 1-month supply of homes available, and this number continues to change quite frequently. Buyer competition is insanely high right now and homes are sometimes only on the market for just a few days PLUS there are often multiple offers.
In a competitive market like the market, we are currently in, it might make more sense to sell your house as is with buyers purchasing homes so quickly. Not only do renovations cost money, but they also take time and the more time that they take might mean that you might miss your key window for selling. The chances are unlikely unless it’s an extensive renovation. We will always suggest you talk to a Realtor before you making any big decision on renovations, especially if you are planning on selling your home in the near future. A licenced Realtor can help you to determine what renovations are worth doing and what are not.
Even more, when you do a renovation, it might not be to the liking of the potential new buyer. Everyone has different tastes and styles and letting them select the style they like is likely advantageous in this market. As a seller, you’re far better off performing smaller cosmetic updates like cleaning your home thoroughly or updating the paint colours. A good Realtor will also provide you with a staging consultation, this will have a dramatic impact on the potential that your home may sell for.
2. Focus on the return on investment
Return on investment is important when you’re considering any larger renovation before you move. After all, you’re going to want to make sure that you recoup the money that you’ve put into it plus more. Speaking to a Realtor before you renovate can help you to make sure that you will see a return on investment. Some homes might need some extensive repairs that do require a large renovation such as a kitchen or bathroom. However, not all homes will need this.
The Bottom Line
The bottom line is that you should definitely talk to a Realtor before considering any extensive renovations if the renovations are solely being done to increase the value of the property. If you are planning on staying for a while and don’t plan on moving within the year, the renovation is for your own personal benefit and not for the sale. If you want a second opinion, let’s connect today! I would be happy to provide some insight and guidance as to what is renovation worth doing or not.