- James Hudak
Selling Your Home: The Benefits of Remodeling
Selling your home can be an exciting and profitable venture, but it can also be stressful and overwhelming. One way to increase your chances of a successful sale and maximize your profits is to consider remodeling your home before putting it on the market. In this blog post, we will discuss the benefits of remodeling your home before a home sale, how remodeling plays into the real estate process with concessions, and the top projects that add the most value to your home, including roofing and exterior painting projects.
Benefits of Remodeling Your Home Before a Home Sale
Increased Home Value: Remodeling your home can increase its value and make it more attractive to potential buyers. According to a report by Remodeling Magazine, minor kitchen remodels, bathroom remodels, and attic bedroom conversions are some of the projects that offer the highest return on investment.
Faster Sale: A well-remodeled home is likely to sell faster than an outdated or poor-condition
home. This is because buyers are often looking for move-in-ready homes and are willing to pay a premium for them.
Higher Selling Price: When you remodel your home before putting it on the market, you can potentially sell it for a higher price. According to a study by the National Association of Realtors, the median price of homes sold that were less than 5 years old was 10% higher than the median price of homes that were 20 years or older.
Competitive Advantage: When you remodel your home before putting it on the market, you can set yourself apart from the competition. This is especially important in a competitive market where there may be many other homes for sale in your area.
Remodeling and the Real Estate Process with Concessions
Concessions are a common practice in the real estate industry where a seller offers a financial incentive to a buyer to help close the deal. This can be in the form of a price reduction, a closing cost credit, or other incentives.
Remodeling can play a role in the concessions process by allowing you to offer a home in better condition and potentially reducing the need for concessions. For example, if you have remodeled your kitchen and bathrooms, a buyer may be more likely to make an offer without requesting a price reduction for those areas of the home.
Top Projects That Add the Most Value to Your Home
Kitchen Remodel: According to the Remodeling Magazine report mentioned earlier, a minor kitchen remodel has an average return on investment of 72.2%. This includes updating appliances, countertops, and flooring.
Bathroom Remodel: A bathroom remodel has an average return on investment of 64.8%. This includes updating fixtures, and flooring, and adding new features such as a walk-in shower.
Attic Bedroom Conversion: Converting an attic into a bedroom can add valuable square footage to your home and has an average return on investment of 60.1%.
Roof Replacement: A new roof can make your home more energy-efficient, increase its curb appeal, and has an average return on investment of 61.2%.
Exterior Painting: A fresh coat of paint can give your home a new look and has an average return on investment of 51.8%.
Facts and Figures
According to a survey by Houzz, 46% of homeowners who remodel their homes do so with the intention of improving their home's resale value. Additionally, a report by the National Association of Realtors found that the median amount spent on home renovations by sellers was $6,000.
Remodeling your home before a home sale can offer many benefits, including increased home value, faster sales, higher selling prices, and competitive advantage. When considering which projects to undertake, it's essential to focus on those that offer the highest return on investment, such as kitchen and bathroom remodeling, attic bedroom conversions, roof replacements, and exterior painting. By investing in these projects, you can potentially increase the value of your home, attract more potential buyers, and ultimately sell your home for a higher price. Remember, a well-remodeled home can set you apart from the competition and make your home more desirable to potential buyers. So, if you're considering selling your home, remodeling it beforehand can be a smart investment that can pay off in the long run.