Updated: Sep 20, 2018
If you are remodeling your home to get more money during the sale, there are things you must keep in mind. There will obviously be those moments where you must remodel and there will be times where even if you do remodel, you will not be able to get the selling price you are hoping for. Regardless of what anyone tells you remodeling will help you sell your home, but the housing market in your area is the number one factor in the actual price you can sell it for.
So, before you jump into remodeling your home, here are some things you should consider.
Can You Recoup the Cost?
Remodeling sounds like a sure-fire way to get more money for your home, right? Well not so fast. Sellers need to consider the bottom line first. Remodeling a home will increase the sale price of the home just to recoup the remodeling expenses.
Remodeling Magazine a source for home remodeling projects has found that very few remodeling projects recoup 100 percent of the cost of the project, of course that number is subject to each city and neighborhood.
The remodeled kitchen is your own vision of what you think will be great upgrades and changes. You may go hi tech and have digital appliances that look modern. But what if technology scares potential buyers. They may not be sure how to use them or even wonder what to do when they break. You may go industrial and with big stoves with multiple burners or add a huge refrigerator. But what it those large appliances remind them of a hospital or restaurant. Or maybe you put in a vegetable sink in the kitchen island. You spent good money on the sink and the potential buyer won’t even know what it is. All they will see is an extra sink in the kitchen island.
Bathrooms are also tricky. With features such as his and hers marble sinks, bulky cabinets and gigantic whirlpool bathtubs, buyers will love it right? Once again, these are upgrades based on your specific style, want and needs. What if a buyer just wants a bathroom for simple use? What if they don’t spend hours hanging in the “Jon” taking long bubble baths. If not, all that money spent on the bathroom may keep a seller from seeing the bathroom as a reason to buy. They will just think of it as a nice bathroom. But it may not be a nice enough bathroom to get them to spend more money on your home.
So, what should you do?
· Declutter- You are selling your home. So that means you want someone to buy it. For that to happen they must see your current home as their future home. So, remove any excess clutter and have your home as clean as possible.
· Fresh paint- Giving your walls a fresh coat of a neutral color paint will work wonders in helping potential buyers visualize your home as their own. Pick soft colors and have them go throughout the house.
· Updating fixtures-Go through your home and update date fixtures. We are talking new celling fans, new shelves, cabinet hardware and even light switch plates will make a big difference. It will instantly modernize your home.
· Go to open houses for "remodeled homes. Use this time to look for ideas and ideas only. You can't get a true idea on how much more value you can create by remodeling without considering much more. You must think of what homes are selling for in your area, the condition of your home, landscaping, square footage and more.
Remember the idea is to sell your house as quickly as possible at the highest possible price. It is all about the profit, not the name on the fridge! If all your profits are eaten up in remodeling costs, you've missed the opportunity to make money on your home.
In general, it's not a great idea to go into debt to remodel, especially if you're about to buy another home. If you take out a large loan to remodel it, you will be adding to your debt to income ratio which may hurt your credit rating and your ability to borrow for your new home. In fact, it could force you to sell your home for even more just to recoup your expenses.
Your best bet is to find a realtor who will be more than happy to give you a free property evaluation. Once you have that evaluation, you will know how much or how little to remodel.