We often write about home renovations and how they can increase the value of your home, but it’s not always necessary or effective to renovate. How do you know when you should just sell your home as-is?
Consider Timing
In real estate, timing has a dramatic impact on your selling and buying decisions. If you’re on a tight timeline—maybe you’ve put an offer in on a house and you need to sell yours as soon as possible—you may want to forgo all major renovations and simply stick to staging your house well in order to sell it quickly.There’s also timing in your personal life to consider. Are you moving jobs? Do you have kids who need to start school soon? If you need to be moved in by a certain time frame, it may be best to put your house on the market as-is and settle into your new home as quickly as possible.
Market Conditions
When it comes to the real estate market, selling in a seller’s market is ideal. If you’re debating whether or not to renovate your home before selling, do some research and speak to a reputable agent in order to gain insight on the market’s conditions. If the number of buyers outnumbers the number of homes currently for sale, it may be worth it to sell your house as-is.The Cost of Renovating
When deciding whether or not to renovate, consider not just the monetary cost but also the cost of labour and time. If you plan to contract out renovations, get various quotes to determine if the cost is worth the potential return on investment. If you want to do the renovations yourself, consider how much time it will take and how much labour is involved.
The State of the Home
Generally, making smart renovations to a home will increase its value and often yields a great return on investment. However, there are certain instances when renovating would be a moot point.
If your home is in need of renovations but is located in a sought-after area, you may just want to sell as-is. Chances are buyers, especially investors, will be interested in the land and may end up completely tearing down the home anyway.
Conversely, your home may not be in need of renovations and can therefore be sold as-is. Keep in mind that “as-is” doesn’t mean not staging the home; if you clean the home and stage effectively then your home is likely to sell much faster.
Other Considerations
A home in need of renovations may attract buyers who are looking to flip the home, resulting in lower offers. Be sure to consult with an agent that has experience selling similar homes or is familiar with the area so that you can discuss the value of the home and establish a bottom line.Renovating your home may not be the best choice for you, especially if you move out soon after and don’t get to enjoy the renovations. Ultimately, deciding whether or not to renovate depends on your timeline, budget, and what will maximize the value of your property.
