When the real estate market favors sellers, it can be tempting to throw up a “for sale” sign and see what happens. You might not think you need to put in as much work, after all, your neighbor’s home sold in 14 days above the asking price.
Yes, there is a chance you could toss your house up for sale “as-is” and it will sell fast for a price above asking. However, not every situation is the same. Let’s look at some of the factors you should consider before listing your home for sale, even in a hot sellers’ market.
Current State of Your Home
Every home is different. Maybe your neighbor’s home sold fast and for a high price, but did they renovate it first? Was it updated already and how does it compare to your home?
If you need to update the entire home, it might be better to sell it as-is after making it as clean and decluttered as possible. Updating just a few key areas can actually make it harder to sell since those areas will likely stick out.
Maybe you own an older home. If this is the case, you don’t need to attempt to compete with newer and more modern homes. Instead, show the home has been well-cared-for and well-loved. This will help attract the right buyer in a hot market.
These two situations may not require much updating or renovating, but other situations might require quite a bit. If your home is in a newer neighborhood and your kitchen needs an update, it’s probably best to update it. Looking at the types of homes on the market and what has recently sold will give you a better idea of what buyers expect.
In some cases, a coat of paint and a few cosmetic updates can go a very long way. It’s not always necessary to redo the entire kitchen or completely update the bathrooms. Your real estate agent will be able to guide you on what to expect with the renovations and updates you choose.
Consider How Fast You Need to Sell
Updating your home before listing will certainly slow down the process. If you’re relocating or need to sell quickly for any reason, selling as-is might be a better way to go. However, if you’re selling just because the market is hot or you’re not in a rush, you might consider making some updates first.
Your timetable matters and should be a factor in the decision. In some cases, you need to get your home listed as fast as possible and sold quickly. Decluttering, cleaning, and maybe a little paint can help ensure your home looks as good as possible before listing.
Sellers not in such a hurry might consider having a home inspection and an appraisal done before listing. This can help you see what might need to be repaired and which types of home renovations might benefit you the most when you sell your home.
Consider the Return on Investment
Most renovations will not pay you back dollar for dollar when you sell. Some will provide a higher return on investment than others. For example, small updates to the kitchen can add quite a bit of value to your home.
Before you make any changes to a home you plan to sell, speak with your agent. They will be able to give you an idea of the return on investment you might gain from specific home renovations.
Consider Your Local Market
You might have read a real estate article that said you should make specific renovations to your home before listing. While it might be right, it could also be aimed at a national audience.
Your local real estate market should be the market you consider. Whether you sell your home as-is or renovate it depends on what your local market supports. Some markets might see homes without renovations selling quickly. Other, highly competitive markets might see the opposite.
If your local market is dominated by turnkey properties, you might need to do some renovating first. However, if fixer-uppers and homes not completely updated dominate the market, it might be okay to list your home as-is.
These factors can all make a difference in your final decision to sell. Whether you sell as-is or you do some renovations, you should consult with a local real estate agent first. They can provide the proper advice before you list your home for sale.