Whether you’ve owned your house for 5 years or 50 years, when you’re thinking about selling you will likely pause to consider whether or not there are home improvement projects that need to be done first. If your home has a current look and oozes pride of ownership, you might not need to do much, if anything. But what if your home looks like a time capsule from 1960, or more likely, it’s a mix of many decades?
There is no “one size fits all” answer to this question, and ultimately, as the home seller, you will need to make the decisions that make the most sense for you. Let’s start with a comparison of two different homes. First the similarities. Both homes are in Danville, and both were built in 1958. Both homes sit on a modest, flat lot, with a private yard with no significant improvements. One home is quite small, in an excellent location. The other home is much larger, in a good, but fairly average location for Danville. For the best return on investment, which homeowner may want to consider extensive remodeling? In this situation, the owner of the smaller home may do better off selling as-is. Why? Based on the excellent location, there may be a good number of buyers who are interested in the property for lot value, which is quite high. Upgrades put into the small house might not change the value at all, if potential buyers are planning to tear it down or do a major addition.
The larger house in the average location will take a much bigger hit on the sales price, if the house needs a lot of cosmetic improvements and even more if it is a major fixer. The difference with the larger house is that the value is tied more to comparable sales in the neighborhood. It’s unlikely that buyers will look at it as a tear down. Instead, they will look at it and start doing the math. How much will a new kitchen cost? 3 New Bathrooms? New hardwood floors throughout the home? New windows & doors? Fresh new landscaping and hardscape? The list might be long.
Another big consideration is time. The majority of buyers today prefer a home that is move-in perfect. Most often with busy careers, busy lives and no remodeling experience, these buyers have decided that they will wait to find a home that they love, just the way it is, so that they do not have to invest their time in working on the home. Not all home sellers have the time or desire to handle remodeling, either. In some situations, a home must be sold quickly, leaving very few resources or options for improvements.
What’s a seller to do? Consult with your trusted Realtor® before you begin spending time & money on home improvements. Why? Your Realtor® can look at your home objectively and help guide you, letting you know which improvements are likely to have a great return, and which ones might not. They will likely have suggestions that you might not have thought of. They can also help you evaluate the market and provide estimates of what your home will sell for with and without improvements. With in depth knowledge, you can then make an educated decision about the path that’s best for you.
Every home sale is unique. Please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com with questions or for a custom analysis and consultation. Even if you’re not planning to move, I’m happy to help by providing you with relevant data, enabling you to make a well informed decision. It’s never too early to start planning for success!
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