After thinking it through, you may have finally decided to sell your home. Maybe you got a job in a different state, want more space for your kids, or are just after a change of scenery. However, selling a home is easier said than done. As of the second quarter of 2019, the U.S. Housing Market was close to its highest value ever. The average sales price of a home during the period was averaging $279,600.
Yet, as we all know, the unexpected arrival of COVID-19 greatly affected the promising trends of 2019. Currently, the market is characterized by slowing price growth, moderate sales, and low new supply. That said, with a vaccine expected in the coming year and the gradual return to normalcy, now is a perfect time to add your house to the market. However, to get the best value for your home, thoughtful remodeling may go a long way.
Renovations and Sale Price
It’s likely that you already made significant renovations to your home since you bought it. Perhaps you replaced the tile floors with hardwood and redesigned the kitchen. However, the hard truth is that not all remodeling projects will drive up your resale price. Renovations that will appeal to a full-time mom who does a lot of cooking may not move a bachelor with three dogs and is rarely home.
A real estate expert at houzeo.com notes that the first step to deciding which renovations will work best for your home is identifying and knowing your target market. Visit popular listing sites to compare similar homes and identify what buyers want. For instance, more people are looking for homes with space for kids to play or a home office. Have you cleared and renovated your backyard or that small space you could convert into a small office?
Prioritize the Kitchen and the Bathroom
The kitchen is the heart of the home for a reason. Real estate experts have stressed that it’s one of the most crucial spaces of any home. That doesn’t mean, however, that people are necessarily looking for expensively fitted kitchens. If you calculate the return on investment: an upscale major remodel will give back less than 60%. However, if you opt for a mid-range remodel, an 80% ROI is possible.
Bathrooms also fall prey to this reality. Upscale renovations may have an ROI of 62%, while mid-level ones will come in at 67%. When choosing bathroom fittings – don’t overspend as most buyers will ultimately want to redo their new space. The lesson is the same: a good remodel is not necessarily an expensive remodel. You just need to add a warm and inviting feel to them. If you can achieve that without breaking the bank, that’s even better.
Avoid Remodels with Low Value
People are visual creatures and home buyers more so. It may make sense to you to target high functionality renovations. Maybe you’re thinking of a garage conversion. Or perhaps you want to replace the heater with a better model even though it’s still working. While these are great ideas and would pay off in the long run, they sadly don’t appeal to buyers.
What you want to do is focus on the aesthetics – think of things like countertops, fresh coats of paint, nice light fixtures, and refreshed cabinets. All these appeal to the visual sense of the buyer and make the house seem more attractive. However, replacing a garage door that’s still functional is not as attractive as doing renovations that buyers care about.
Be Smart When Selling Your Home
Ultimately, a good remodel should provide excellent value for the buyer and you as well. If it boosts your ultimate price and makes the buyer happy, then that counts as a job well done. Be smart when selling your home, take your time, and compare market prices.