It’s a question many home sellers ask: should I renovate the house first before selling? It’s a question worth addressing, as it’s a crucial decision that would determine profitability (or loss, for that matter). There’s no exact answer to the question though because it depends on a lot of factors, such as the market and the property condition.
The End in Mind
The key to deciding whether to renovate or not is to start with the end in mind. The end is to sell, but have you considered the type of person at the receiving end of the sale? It’s important to know the audience you’re targeting.
If your target buyer is a couple with young children, chances are they wouldn’t want to go through the hassle of tearing down walls and scraping floors. They would rather go for a house that would require little to no renovation so that they can move in right away. In this case, you would want to invest in giving your house a face lift.
If you think renovations would go a little over budget though, some companies like Homestead Road buy ugly homes and turn them into modern properties enticing for your target market. It’s best if you could talk to these experts so you can weigh your options better.
The bottom line is you have to know your market. Are they the type of people who want to fix a house or to have an already fixed one?
Another point of consideration is the property’s condition itself. If your house hasn’t been touched in the last two decades, it will most likely require a lot of renovations. When you tear an old house down, it will reveal a lot of issues that can dramatically dry up your finances.
The more sensible move here is to keep the home as it is, selling it at a lower price. Yes, you won’t be able to get as much on the sale, but you save yourself from a potential debt on dramatic property overhaul.
The decision to renovate or not before selling a house is crucial. Keep financial woes at bay by knowing your market and evaluating your property.