Brand-new homes sell for the highest price per square foot. Of course, homes with unique views or golf course frontage usually go for a premium, but the newer your home looks and feels, the higher your sales price will be. That’s why it can pay off considerably to make renovations—even in the strong seller’s market we’re in right now.
If you’re looking to maximize the money you put in your pocket when you sell, you should make your home look and feel as new as possible—whether that means doing something minor (like replacing light fixtures and repainting) or something more substantial (like refacing cabinets and getting new countertops).
Sellers often assume that buyers want to make renovation decisions themselves after purchasing. Sellers worry about painting walls the wrong color or choosing the wrong countertops. Selling your home as it is and allowing buyers to make their own renovations sounds nice in theory, but the reality is that most buyers want something move-in ready—and they’re willing to pay a premium for it. If you have the time, anywhere from one to three months, and the cash to make the investment, then renovating your home before selling will absolutely pay off. Here are the five main reasons why…
#1 – Vision
Most buyers don’t have the mindset to see what’s possible. They lack the vision to see past dated finishes and how amazing they could make the home. When that’s the case, they’re likely to overlook your home; without renovations, it’s just not going to be an option.
#2 – Budget
Many buyers don’t have the extra cash flow to make renovations themselves. Quite often, their money is tied up in investments and new business ventures. That’s why it can be beneficial for them to pay a higher sales price, get a bigger loan, and wrap everything into one mortgage.
#3 – A Place to Live
Even when buyers want to make renovations themselves, they don’t always have somewhere to live while the renovations take place. Buyers—particularly Californians who are moving here in higher numbers than ever before—prefer to move straight into a home they can actually live in. The same goes for locals; everyone loves a smooth transition.
#4 – Overwhelm
Renovating can be a big task, especially when buyers are new to town and don’t have connections with designers, contractors, and vendors. Managing appointments in unfamiliar territory can be time-consuming and overwhelming, as well. Many buyers would rather say, “No, thanks. I want a home that’s turnkey.”
#5 – Overestimation
Buyers are not in the business of renovating homes, so they don’t know what these things cost. They tend to overestimate costs by at least two to three times, which scares them off. This is just one more reason to get your home ready before you put it on the market.
Renovating before selling isn’t for everybody, but if you have the time and the cash, it can really pay off. As experts in selling luxury homes for top dollar, we at the Rob Jensen Company can help you decide if making renovations will be worth the cost before you do anything. This is something we commonly help our clients with, whether they live locally or out of state, and we have plenty of connections to designers, contractors, vendors, etc. If you’d like more insight, give us a call at 702.442.1150. We would love to help you.