So, what’s the best course of action to take? Should you put the time and money in to finish? Or should you cut your losses and list the home for sale?
To help you make that decision, we’ve listed the perks and drawbacks of renovating before selling that you may want to consider.
Pros of Renovating Before You Sell
The Home May Sell Easier
Your real estate agent will be happier if your Seattle or Portland home is fully renovated. That’s because they know that the home may sell easier in a fully renovated condition. Of course, you could get a prospective DIY homebuyer eager to put their own “stamp” on the home, but that is nothing you can count on.
There Will Be Less Explaining
If you have finished the renovation, you have nothing to explain and no excuses to make to anyone. In the renovated condition, the home is what it is. Even if a prospective home buyer does not happen to like the new paint color you have chosen, they still can’t complain that it is old or worn looking.
Remove Buyer Objections
A home is a huge financial investment for buyers, so they will certainly want to make sure that the home they agree to buy is worth the money they spend on it. Buyers will naturally be on the lookout for any flaws in the home which could deter them from putting in an offer.
But when the home in Oregon or Idaho has been done up and renovated, there will be little for buyers to object to, which can not only make it easier for you to sell, but it will remove barriers that would have hindered the buyer from putting in a decent offer.
Common buyer objections can include things like out-of-date decor, cracks in the wall, chipped tiles, loose handrails, missing fixtures, or unkempt landscaping. If you can tackle any of these issues before you list your home for sale, you can effectively remove any buyer objections that could deter them from putting in a good offer.
Boost the Perceived Value of Your Home
Every seller wants to get the most money out of the sale of their home as possible. And one way to increase the value of your home is by renovating before you put your home up for sale. Certain types of renovations bring in a higher rate of return, so be sure to focus on these.
For instance, bathroom and kitchen refacing, new flooring, updated counters, and updated lighting can bring in a decent ROI. The key is not to spend more on the updates than you can recoup when you eventually sell.
This is why investors participate in “fixing and flipping” homes in Boise or Denver. It’s a type of business that works when done properly. You can add instant equity in the home when you renovate, which can translate into a higher sale price at the end of the day.
Cons of Renovating Before You Sell
You May Not Recoup The Extra Expenses
Not all home renovations equate to value-added improvements that you can count in your wallet. If your renovations are small things like replacing door hinges, patching a hole in the plaster, or stripping outdated wallpaper, you are unlikely to see an equal increase in what you can get for your home sale.
On the other hand, if you spend too much on your renovations, you may not see all that money come sale time. Spending too much and over-improving your home can leave you with less money in your pocket. As mentioned earlier, it’s important to be smart about the types of renovations you make on your home so you can realize a higher ROI when you eventually sell your home in Colorado or Washington.
You Will Need To Delay Your Listing
Home renovations can take up a lot of time, as you may know if you have done a lot of them already. You will have to delay listing your home, which in turn will mean putting your moving plans on hold for what could be an extra month or two. Depending on your future plans, this could impact your child’s school entry date and more.
If you’re looking for a quick sale, then renovating your home may not be the best option for you.
No one will force you to complete half-finished renovations. But consider these pros and cons before deciding how to proceed.
Ready to Apply For a Mortgage?
If you’re in need of a mortgage, we can help. Sammamish Mortgage is a mortgage company serving the Pacific Northwest region including Washington, Idaho, Colorado, and Oregon since 1992. We offer a number of mortgage programs with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.