Should I renovate my house before selling?
When
considering selling, many people ask should I renovate my house before selling
to garner a higher price? There is no one answer to this question as it very
much depends on your specific circumstances.
There are two circumstances when it probably does not make sense to renovate before you sell and they are at either end of the spectrum. If your house is already the best one on the street, you are probably at the top of the market and won’t recognize any additional benefit. If your house is the worst on the street – in need of both repairs and remodeling – it probably makes sense to sell as-is. One technique your realtor might employ is to list below market value, hold off offers until a specific time and try to create a competition that will push the sale price up as high as the market allows.
If your
property falls within the two extremes it is more difficult to decide what to
do and may make sense to renovate before you sell. First, make sure you
know your competition. What have homes sold for and in what kind of
shape? Would “staging” be sufficient to show your home’s full
potential? By staging I mean, fresh paint, de-cluttering, modernizing
hardware and lighting fixtures and potentially renting some furnishings for the
showings.
If you determine that a renovation is necessary, be prudent about it. Set a budget and stick to it. And spend your money wisely. In general, kitchen and bathroom renovations generate the highest ROI so start there. Sometimes inexpensive solutions can go a long way. Replace the kitchen counter, reface cabinets and change hardware, the sink and appliances rather than rebuilding the kitchen from the floor up. In the bathroom, paint a neutral colour, re-glaze the tub, replace the toilet and vanity and change up old lighting fixtures and hardware.
If in doubt, I can help you determine if you should renovate before selling based on recent sales in your neighbourhood. Call me at 905-822-6900.
There are two circumstances when it probably does not make sense to renovate before you sell and they are at either end of the spectrum. If your house is already the best one on the street, you are probably at the top of the market and won’t recognize any additional benefit. If your house is the worst on the street – in need of both repairs and remodeling – it probably makes sense to sell as-is. One technique your realtor might employ is to list below market value, hold off offers until a specific time and try to create a competition that will push the sale price up as high as the market allows.
If your
property falls within the two extremes it is more difficult to decide what to
do and may make sense to renovate before you sell. First, make sure you
know your competition. What have homes sold for and in what kind of
shape? Would “staging” be sufficient to show your home’s full
potential? By staging I mean, fresh paint, de-cluttering, modernizing
hardware and lighting fixtures and potentially renting some furnishings for the
showings.If you determine that a renovation is necessary, be prudent about it. Set a budget and stick to it. And spend your money wisely. In general, kitchen and bathroom renovations generate the highest ROI so start there. Sometimes inexpensive solutions can go a long way. Replace the kitchen counter, reface cabinets and change hardware, the sink and appliances rather than rebuilding the kitchen from the floor up. In the bathroom, paint a neutral colour, re-glaze the tub, replace the toilet and vanity and change up old lighting fixtures and hardware.
If in doubt, I can help you determine if you should renovate before selling based on recent sales in your neighbourhood. Call me at 905-822-6900.
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