If you are looking to sell your older home soon, you may know it needs some work. Perhaps some updating will bring it in line with today’s modern home buyers’ needs and expectations. But you also know you may not want to sink money into a home you don’t plan on living in any longer, but would prefer to keep that money in your bank account for a new home.
Sometimes, making some renovations before selling will put your home in a more attractive light and allow you to command a asking list price. You have two options in this situation:
- You can sell it as is, in its current condition, with no updates.
- You can perform some renovations or upgrades to pull in more money when selling.
Yes, renovating the property may ensure your home sells faster and for more money. But listing the home as is also has some perks: you don’t have to live amidst a renovation for something you won’t be able to enjoy, and you put the money you save on improvements to better use. So how do you decide? Well, your Realtor can help a lot in this case, but here are some general tips.
Timing
If you already have one foot out the door because you found your new dream house and just want to be done with it already, you may want to sell as is. You will have enough on your hands with the closing and moving into your new place. You may not have the time or patience to handle a renovation right now, and you may not even care to secure the extra few thousands on the list price that would come with a home improvement.
If you’re on the fence, it’s best to get an expert’s opinion, like from your Realtor. He or she will be able to assess the current condition of your home and if it’s worth it in terms of higher list price to sell as is or with some improvements.
Need
Of course, the nature of those improvements will be a determining factor as well. If you’re looking to replace the carpeting with hardwood, this could be considered an extraneous expense, something you can do without and just ask for a lower price. But if the roof is crumbling or the septic tank is failing, you will have to address these things before you sell in order to pass inspection.
There are also degrees of renovations. Does the place just need a new coat of paint to make it more attractive to buyers, or does it need major overhauls in the kitchen and bathroom?
Budget
Your budget will also come into play here as well. You’ll have to crunch the numbers. Do you have the extra money in your budget to make the renovations and buy a new house?
And remember, just because you put a bunch of money into the property doesn’t mean you will see a direct translation to that amount on the list price. The perceived value by the buyer is all that matters. That guest room you took so much time and money to update may mean nothing to a potential buyer who could care less about a guest room.
Depending on the level of renovations you are willing to perform, you may have to find temporary housing while they are being done. Do you want to deal with that hassle?
Location
If your home sits on a valuable piece of land but the house itself is not that great, you may want to sell as is – especially if the land is more valuable than the house and potential buyers will just end up tearing the place down or totally renovating it anyway.
Contact Berkshire Hathaway Premier Properties
Our Realtors can meet with you and discuss whether it’s best for you to sell your home as is or if you should renovate it first to get the most bang for your buck. Just contact Berkshire Hathaway Premier Properties today at 713-862-0000.