To some people, the idea of putting their home on the market without fixing it up first is unthinkable. Tradition states that every room needs to sparkle and shine before a buyer so much as steps foot onto the property.
Thus begins the longstanding debate: is it better to renovate your home before listing it for sale? Or are those homeowners skipping this long and expensive endeavour on to something? We are more than happy to enter this fray! In this post, we’ll explore the benefits and downsides of either path.
The Case for Renovating
It can be challenging to think of the home you have lived in, possibly for years or even decades, as “just a product” for sale. However, like anything buyers are looking for, appearances matter. The better something looks, the more people will want it. If you do it right, renovating your house offers two distinct benefits:
You can often sell faster. This allows you to get on with the next stage in your life, and you no longer have to worry about frantic cleanups because a buyer booked a showing at the last minute.
You can earn a higher return on your investment. Even with the cost of renovations, you typically end up with more money in your bank account after your sale closes. The key is to be strategic about what improvements you make and how.
Staging doesn’t usually require extensive upgrades, but can really maximize the results from any sale. Learn more in the posts below:
- Beyond Staging: Adding the Most Value for the Least Effort
- Why Should You Stage Before Selling Your Home in Peterborough?
Why Some Homeowners Avoid Renovating
Since the advantages of renovating before selling seem so clear-cut, why doesn’t everyone do it? First of all, it can be complicated. You need to decide which renovations will offer the most bang for your buck. This can feel like a guessing game.
For example, imagine spending thousands of dollars on new carpets – only for them to fall out of fashion the week before your sale goes live. This may be an exaggeration, but it can and does happen. In this case, you invested your hard-earned money and a significant amount of time that allows you to break even at best. Or worse, you spend money only to earn less on your sale. No one wants that!
In addition, renovating your home takes time. Some people just don’t love the idea of living in a construction zone for a few months while these improvements take place.
The Benefits of Selling As-Is
Even if you do end up with more cash in hand, some homeowners decide it’s just not worth the time or effort to renovate. If the idea of picking up a hammer or paint brush intimidates you, or if you can’t imagine scouring the Internet for a reputable contractor to handle the repairs, you might decide to sell your home as-is.
This path makes even more sense when your house is relatively new or if you’ve been meticulous about maintenance over the years. All of that attention to detail can pay off in the form of much less work needed before your property goes on the market.
What Selling As-Is Can Cost You
What’s the worst that could happen if you decide not to repair and upgrade your home? The obvious disadvantage is that you may stand to earn less from your sale. Even worse, it could take longer to find a buyer, which means you’ll have to live with more of those last-minute showings.
Inconvenience aside, there can be real danger in staying too long on the market. In the best-case scenario, potential buyers will start to try to negotiate a lower price. If you’ve already factored in the condition of your home, earning even less from your sale might not be an option. In the worst-case scenario, your listing could develop a stigma, possibly not even selling at all.
Market Factors at Play
Deciding whether to renovate or not is about striking the balance between earning the highest amount possible from your sale with the least amount of effort. However, achieving this goal often has more to do with outside factors beyond your control. It always pays to know what is happening in the market before planning your next steps. For example:
- Is it a seller’s market where every listing gets scooped up regardless of its condition? In this case, you might not have to do anything at all beyond a thorough scrubbing of your home.
- Is it a buyer’s market where people take their time before making a decision one way or the other? If so, you’ll likely have to step up your game to make your home appeal to potential buyers. It doesn’t necessarily mean a top-to-bottom remodel. However, some upgrades can mean the difference between earning a fair price and not selling at all.
- Is the market balanced where buyers and sellers are basically even? Renovating may be an option, but you can afford to be strategic about it.
Looking for even more advice when buying or selling in Peterborough? Here is some related reading you’re sure to enjoy:
- What a Concierge Realtor® Can Do to Sell Your Home
- Need to Sell Your House in Peterborough? Here’s What Buyers Are Looking For
- Can You Sell Your Peterborough Home Remotely?
A Happy Medium
Now you have an idea of what to expect. There is, however, a third option that you may not be aware of. You will be surprised at how much you can accomplish in a short period of time when you don’t try to do it by yourself. By working with an experienced real estate team, you just might be able to achieve the best of both worlds.
Enjoy an almost entirely hands-off selling experience, while your Realtor® works with reputable contractors and tradespeople to get your house looking spectacular. A small investment in professional upgrades can offer a substantial return once your sale closes. Best of all, this option gets you the rewards with the least amount of time and effort.
Do you want to know more about buying or selling a home in Peterborough or Kawartha Lakes? Our Peterborough real estate agents are happy to help. Reach out to team@jeffandkatie.ca or call 705-243-9797 for more information.
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