Does it make sense to renovate your home before you list it for sale? Most often, the answer to this question is no. Right now, you’re probably not going to get all your money back if you renovate your home. The reason is that ours is such a strong seller’s market that there isn’t a lot of competition for sellers. So if you are thinking about putting your house on the market and you’re concerned about getting the best return, it’s not really worth doing any renovations.
If you plan to live in the home for more than a year and you’d like the benefit of having a new kitchen or bathroom, then by all means, go for it. Just know that you’re probably not going to get all of your money back when you sell. Homes do appreciate, but if you drop $30,000 on a new kitchen, your home likely won’t appreciate by nearly as much.
“IF YOU WANT A NEW KITCHEN OR BATHROOM, THEN BY ALL MEANS, GO FOR IT, JUST DON’T EXPECT A HUGE RETURN.”
However, there are some things that you can do to prep your home to sell for more, and these projects don’t involve large-scale renovations or huge expenses:
- A garage door replacement can bring you around a 95% return.
- Adding a wood deck can get you a 90% return.
- Replacing your roof can get you an 80% to 85% return.
- With a mid-level bathroom remodel, you can get about 60% of your money back.
- A mid-range kitchen remodel can get you just over a 50% return.
The National Association of Realtors reported in September that the average house had three offers on it by the time it sold, which is crazy! They also said that 70% of all homes sold in September were on the market for fewer than 30 days. That confirms we’re in an extremely strong seller’s market.
However, the market won’t stay like this forever; it will eventually transition into a more neutral market and then into more of a buyer’s market. At that point, renovating might help you stand out from your increased competition.
If you have any questions about getting your home ready for the market, reach out to us. We’d be happy to help you.