When it comes time to sell your home, is it a good idea to renovate or repair your home or would you be better off selling it as is? Well, the question depends on a handful of variables including what the real estate market is currently like and, above all, the ROI.
If a home is virtually unliveable, there’s a good chance that contractors or flippers would be more than happy to snap up the property and make the repairs, but would a homebuyer want to buy a major fixer-upper? More often than not, the answer is no.
Homebuyers want move-in ready homes
Most homebuyers who are looking for a fixer-upper usually expect minor, more cosmetic repairs. The rare ones who want a major fixer upper either don’t qualify to buy a more expensive home or expect to make a profit by fixing it themselves.
Most buyers usually want a home that is move-in ready – not one that would require, say, a new roof or pipe replacements, as these worry homebuyers that they may end up incurring extra costs or new problems that may be discovered once the renovations and repairs are underway.
By not making repairs that give your home that move-in readiness, you may be limiting the amount of buyers who would gravitate towards your home.
What’s the ROI on home renovations?
Your best bet would be to weigh the cost of home improvements against the home’s market value after the repairs are completed. If the upgrade does not garner a major ROI, then it is likely not warranted. It may be worthy to note that kitchens and bathrooms garner the highest return on investment.
It might be in your best interest to peruse other homes in your area before you decide to undertake any major renovations or repairs in your home. See what condition other homes in your area are in and renovate accordingly.
Sometimes, a fresh coat of paint and new appliances are all that are needed to give your kitchen that upgraded look.
The bare minimum of home renovations
When it comes to the bare minimum of home improvements you should make before placing your home on the market, here are some:
- Patch up holes and cracks in walls and ceilings
- Repair leaky faucets
- Replace old, dingy carpeting
- Repaint dated walls
- Replace broken windows
- Repair the roof
- Fix code violations
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