It can be tricky to decide whether to spend money on improvements before putting a house on the market or sell it right away. This decision depends mainly on the current state of the real estate market and the home’s condition.
But other determining factors will come into play. We will dive into some of the essential points to consider before making any decision, including making improvements beforehand or just selling your home as-is on the market.
Option #1: Make Improvements & Repairs Before Selling a House
Are you planning to sell your home? You may want to spend money on improvements before you sell your home. The best way to decide this is to partner with a professional real estate agent and note their recommendations and suggestions.
You will discover which repairs and improvements can increase your home’s value and which ones are not worth the investment. This will help you get more money and boost your chances of selling a home quickly.
What Should You Consider Before Deciding to Make Home Improvements?
You may want to think twice before putting the money into fixing it up since fixes don’t always result in a higher home value. What’s more, some home improvements or repairs end up being a waste of money and time.
The last thing you want is to spend money on expensive stuff you don’t need. That’s why you should consider the following factors before you spend money on improvements.
The Condition of Your Home and Competing Houses for Sale in Your Area
You should consider the condition and price of similarly located houses for sale as well as ones that recently sold. This will help you determine whether your home offers less or more than the competing ones.
This is where CMA (competitive market analysis) comes in and the primary reason you should partner with a real estate agent to conduct it for you.
Return On Your Investment (ROI)
Some repairs are more profitable than others, as they generate higher ROI. For instance, a new garage door may add only $2,500 to your home value, while small kitchen makeovers may increase the sale value of your house by more than $15,000.
The Current State of the Housing Market
Remember that many buyers are not interested in looking at homes that need repairs or fixer-uppers in slow real estate markets. On the other hand, homes sell super fast in hot markets like the Sacramento real estate market.
So, it’s possible to get away without spending money on improvements. Even so, a home that needs work delivers a lower price in most cases compared to newly renovated houses.
Which Improvements Are Likely to Generate High ROI in Your Real Estate Market?
Not every home improvement is worthwhile. With that in mind, smart sellers always consult agents before making any upgrades, and this can help them identify and prioritize the ones adding the most value.
It is a good idea to note all the repairs/improvements needed. You should address the significant issues first, such as structural problems. Then add other home improvements that yield a high return on investment.
Here are some home fixes and upgrades that are proven to provide a good ROI in the Sacramento real estate market:
- Replacing old windows and broken window glass
- Fixing damaged floors and replacing old or damaged carpeting
- Replacing vinyl or fiber-cement siding
- Repairing cracks and holes in ceilings and walls
- Replacing a steel entry door
- Repainting the rooms with neutral colors and fixing chipping paint
- Patching any leaks and fixing leaky plumbing
- Replacing toilets and fixtures if needed
- Adding a deck
- Replacing broken or old appliances
- Repairing your HVAC system
Option #2: Selling Your Home As-Is
If you have searched for homes for sale in the Sacramento real estate market, you’ve seen many houses that sell ‘as-is.’ This means no repairs are made, and people will purchase those homes in their current condition.
Sometimes, spending money on improvements can be too expensive or not economical at all. That said, it’s no surprise some sellers don’t fix up their homes even if there are serious foundation issues or structural failures that may cause the roof to collapse.
However, if you are aware of structural issues, you must inform potential buyers and your real estate agent of such conditions.
Are There Good Reasons to Sell Your Home As-Is?
It could be better to sell a home as-is because many buyers don’t notice some flaws or are not interested in paying extra to get them fixed after purchase. This is especially true for the color of paint or newly installed carpet or tile.
There are a variety of situations when sellers try to attract multiple offers by pricing the home low instead of forking out money for substantial repairs. The following are the most common reasons properties sell as-is:
- Poor ROI for Repairs – Despite being pricey, some updating fixtures and repairs don’t drastically increase the home’s resale value. It makes no sense to spend money on improvements that won’t considerably boost your home’s curb appeal, right?
- Limited Budget – Completing all the required home repairs and improvements can be a big challenge for those who are tight on money. This is especially true for poorly maintained houses that need plenty of work, and that’s why the sellers choose to sell their homes as-is.
- Outdated Functionality – Not all landlords stay abreast of the latest home renovation trends, which is why their houses appear out of date. But this doesn’t mean they are not move-in ready. As long as the property is perfectly functional, prospective buyers will not have to do kitchen remodels, redo the bathrooms, and so on.
- Lack of Time – Besides money, performing home repairs takes some time. The homeowners want to sell their houses quickly when facing financial problems, relocating for a new job, etc. It could be unrealistic to complete all the renovations needed quickly.
- Zero-Knowledge of Property – It is not uncommon for homeowners to sell homes shortly after inheriting them. Since they haven’t lived in those houses, they are not aware of the issues and repairs required.
Don’t rush into selling your home. Instead, take the time to repair and remodel the items that can boost your home’s sale value when appropriate. The sellers who want to get a higher return on their investment should consult with a real estate agent before selling their homes.
Contact us today to find out how you can get the most for your home and only spend money on improvements to get it sold quickly.