Renovating a home in order to sell it has often been viewed with skepticism. However, with the real estate market up in many locales, quality products can help you get a higher sale price for your investment property.
That doesn’t mean you should spend a small fortune to try and maximize your renovation investment. Use this guide to learn more about how and why to spend money on quality upgrades before selling a property.
New Buyers Don’t Want to Make Repairs
The average home buyer has a steady job. There’s also a good chance that they have a family, social engagements and community activities on the calendar. That doesn’t leave most people with tons of free time. What does that mean for you as a seller?
It means that most home buyers don’t want to spend tons of time making repairs. The average buyer won’t be able to source contractors or even know how to handle the work they want done either. For that reason, many buyers are willing to pay extra to move in to a dream home that’s practically perfect from day one.
For that reason, there’s added value in making quality upgrades before selling. Simply put, making a smart renovation investment before selling can increase the property value and put more cash in your pocket.
Your Property Could Sell Faster for More Money
How a property looks when a potential buyer sees it for the first time matters. These first impressions are particularly important for residential homes. If a buyer can’t see themselves living in the house after a few minutes inside, there’s a good chance they’ll move on to look for more fitting options. That can leave you with an unsold property for weeks or even months.
On the other hand, a property that makes an amazing first impression may sell very quickly. In the best case scenario for you as a seller, you may even find that you have multiple parties interested in your property within a few days. This can push the sale price up, particularly in markets where housing options are low and in desirable areas.
Know Where to Spend Money
Spending tons of money to update a property without a plan can hurt your bottom line. To get the most out of your renovation investment, you need to be smart about where you make upgrades. Here are some renovation investment ideas that can pay off for you in the end:
• Spend money on essential structural repairs. If the property has any damage, you’ll want to correct all of these issues before selling. Not fixing these problems could result in a reduced sale price and far less return on investment (ROI).
• Make improvements that will stand the test of time. For example, spending money on an upgraded roof or central air and heating system is better for your ROI than flashy upgrades that don’t really work to support the longevity of the property. Remember that most buyers want a trouble-free property that won’t require a lot of maintenance.
• Focus on doors, windows and other improvements that help with a home’s energy efficiency. Efficiency and reduced spending could be an important deciding factor for a potential buyer.
• Add modern, high-quality appointments in high-traffic areas first. These are first to be seen by potential buyers, so they’re where your house will make its first impression. Spare bedrooms and extra bathrooms in the back of the home tend to need fewer upgrades and don’t typically offer much ROI unless they are badly ailing.
• Upgrade spaces where buyers spend the most time. The kitchen, master bedroom, master bathroom and living room are most important. The box room in the back of the house? It’s likely to become a kid’s room or a home office, so more than a fresh coat of paint may be unnecessary.
• If in doubt, paint your interior and exterior. A fresh coat of paint offers an average 165% ROI, making it a no-brainer unless the home has been painted in the last few years. Even if the interior has clean paint, switching to a neutral color from a bolder design may make the home more appealing to a larger number of potential buyers.
Quality products, services and thoroughly considered upgrades can help you maximize your ROI on an investment property. By showing potential buyers that your property is well-maintained and upgraded with longevity in mind, you’ll be able to list at higher sale price.
You may even find that quality upgrades help you get your property sold in days instead of months. In a busy market it’s the perfect, no work required properties that go first. They also go for the most money, particularly in affluent and desirable residential and commercial areas.