If you’re planning to sell your home this year, you couldn’t have picked better market conditions. But there is still competition from other sellers, so you’ll want to get your property ready to appeal to the most buyers possible.
One of the most pressing questions sellers ask relates to renovations. Specifically, should you renovate your home before trying to sell it? That’s a complex issue. Here’s what you need to know before you start taking on too many major projects.
- Home Inventory Remains Low
Housing inventory remains well below what is considered “normal” in a balanced market. The National Association of Realtors (NAR) reports that inventory has sunk to an all-time low. What does this have to do with home renovations?
Because homes for sale are so scarce, sellers are in the best position possible. If you don’t want to invest in home renovations to make your home more desirable, you probably don’t have to in this type of market.
- Buyers May Be Willing to Compromise
As we just described, many buyers are facing challenges getting into a home in a market with low availability. If your kitchen needs updating or the flooring needs a little help, they’ll probably be willing to compromise and do the work themselves.
That said, you can probably do some minor upgrades that will improve the look and feel of your home. Remember, first impressions mean a lot when selling a home. Your real estate agent can help you make the right choices when it comes to presentation.
- You May Not Recoup the Full Value of Renovations
Unfortunately, home renovations just before putting up a “for sale” sign may not increase the value of your home as much as you would wish. In fact, you are unlikely to recoup the cost of most renovations through home price appreciation.
Before you start making a list of improvements, think of how much you’d like to spend. Stick closely to your budget and avoid the temptation to choose top-of-the-line fixtures and upgrades.
- Be Sure to Look at Other Renovated Homes on the Market
One of the best ways to see what is “hot” with remodeled homes is to keep a close eye on your current real estate market. Check out other listings in your area to see what features people are adding to their homes. Use this research to prioritize your home renovation list, provided those items will make your property competitive.
- Consider Your Wants and Needs
It might be an excellent market for sellers. But markets can shift on a dime. There’s no way to tell how long your home will take to sell, and you might decide you’d rather keep it. If you’re going to invest in any home renovations, make sure they are something you would like and use if you were the buyer.
- Only Focus on Improvement That Will Add Value
There aren’t many home improvements that will add value to your home. But there are a few. If you’re unsure about where you should be focusing your efforts, you might consider a pre-sale inspection. If there are problems with your property, your money would be better spent addressing those items rather than kitchen backsplashes and shrubs.
If your home needs a new roof, A/C, or additional insulation, those items should be top on the list. Otherwise, you can add value by focusing on smaller items like landscaping, paint, window treatments, and updated fixtures.
- Never Cut Corners With Renovations
No matter what renovations you choose to do, make sure you do them right. Buyers will notice if you cut corners or try to rush a job. If something isn’t done correctly, they may question whether the rest of the home is properly constructed and maintained.
- Have Your Real Estate Agent Highlight the Improvements
People love doing home upgrades and improvements, whether they recoup the investment or not. According to a recent report, home improvement spending is $10,341 per year on average.
If you’ve spent the money anyway or unexpectedly decided to sell your home after some major upgrades, try to highlight those improvements as much as possible. Have your real estate agent feature them in your listing and talk them up to potential buyers who view the home.
Work With a Title Company You Can Trust
When you decide to sell your Maryland home, you need a title company you can trust that will do what it takes to close your real estate transaction smoothly and on time. United Title has been serving clients throughout the region for nearly four decades. We handle residential and commercial real estate transactions of all complexities. Contact us today to learn how we can provide the reliable settlement services you need.