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When is it financially beneficial to renovate a home before listing it

Not many real estate agents would recommend “renovating” a home before listing it for sale for these reasons:

  • If you as the current owner of the home are making all the decisions of what to change, upgrade or renovate in your home, there’s no way of knowing what a potential buyer would choose to do if they were renovating the home. While it is wise to make certain your home has been recently repainted throughout, that all flooring is in good condition and the kitchen and bathrooms are fairly up-to-date, most buyers would prefer to do any actual “renovating” after they buy the home so any renovating is per their individual tastes and choices.
  • If you do the “renovating” prior to listing your home, it’s reasonable to assume that the cost of the renovating will be included in a new, higher listing price. Most buyers would prefer to buy a home that’s in reasonably good condition, but if any renovating is to be done, they’d prefer to do it after they purchase the home so all the choices and decisions are theirs to make. Thus, such buyers would be looking for a home in “reasonably” good condition, but at a reasonable purchase price so they can invest money renovating but using their own personal tastes and choices.
  • Unless you’re aprofessional renovator, the decisions you make about renovating your home may not be choices an average buyer would choose to make, so there’s no guarantee that renovating the home would increase the value as much as you’d like.
  • If you have considerable experience in renovating homes and have a handle on what most buyers want in a resale home, then it “may” be a good decision about renovating your home before listing it for sale. You’d want to invest your own money only in cost-effective improvements that would more than pay for themselves by attracting a higher sales price. If you spent more on renovating than could be recouped when you sell the home, you could lose money.
  • Before making the decision about renovating your home before listing it for sale talk with a couple of experienced real estate agents in your area about what improvements would add to the sales price and which improvements would not be considered cost-effective.

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