In the current sellers’ market, many homeowners wonder what,
if anything, needs to be remodeled before they list their house. That’s where a
trusted real estate professional comes in. They can help you think through
today’s market conditions and how they impact what you should – and shouldn’t –
renovate before selling.
Here are some considerations a professional will guide you
1. With current supply challenges, buyers may be willing
to take on projects of their own.
A more balanced market typically sees a 6-month supply of
homes for sale. Above that, and we’re in a buyers’ market. Below that, and
we’re in a sellers’ market. According to a recent report by the National Association
of Realtors (NAR), our current supply of homes for sale, while rising, still
remains solidly in sellers’ market territory:
“Unsold inventory sits at a 2.6-month supply at the
current sales pace, modestly up from May’s 2.5-month supply but down from 3.9
months in June 2020.”
So, what’s that mean for you? If you’re a seller trying to
decide whether or not to renovate, this is especially important because it’s
indicative of buyer behavior. When there aren’t enough homes for sale, buyers
may be more willing to purchase a home that doesn’t meet all their needs and
renovate it themselves later.
2. Not all renovation projects are equal.
You don’t want to spend time and money on a project that
isn’t worth the cost or is too niche design-wise for some homebuyers. According
to an article by Renofi.com, basing home updates on what’s trendy right now can
be a costly mistake:
“The last thing you as a homeowner want to do is
center your home design around a passing fad – even worse, one thats design
quality won’t last a good while.”
Before making any decisions, talk to your real estate
advisor. They have insight into what other sellers are doing before listing
their homes and how buyers are reacting to those upgrades. Don’t spend the time
and money to be trendy – if your buyer wants to upgrade to the newest fad
later, they can.
3. If you’ve already made upgrades this past year, your
agent can help spotlight them.
If you have already completed some renovations on your
house, you’re not alone. The pandemic kept people at home last year, and during
that time, many homeowners completed some home improvement projects.
HomeAdvisor’s 2021 State of Home Spending Report found:
“35% of households that completed an improvement project
undertook some type of interior painting, while 31% completed a bathroom
remodel and 26% installed new flooring.”
When it comes to renovations, your return-on-investment
should be top of mind. Let’s connect today to talk through any upgrades you’ve
already made and to find out what you should prioritize before you sell to
maximize your house’s potential.