3 Myths About Renovating Your Home Before Listing

Have you seen those mesmerizing renovations on TV? People invest tens of thousands of dollars to renovate their homes to get a better selling price. The before-and-afters are always stunning. Then, at the end of the show, they reveal the new value of their home, and their investment makes a sizable profit. 

Are these renovations’ ROI TV magic or myth? Great question.

Steve and I always get asked, “Should I renovate my house before I sell it?” Our answer is: Proceed with caution when spending time and money fixing a house for the next owner. 

Today, I’m busting 3 myths about renovating before moving. I’m also sharing 5 tips to help you decide if renovating is worth the investment. Come take a look...

Myth 1: Renovating your home will automatically increase its value

The truth is, we can’t predict if a renovation will increase the value of your home, and you may or may not recoup the total investment when you finally do sell your property.  And if you do see a return on your investment, it might not be as much as you want to see.

However, when you sell your home, it is necessary to have it in good working order. There is a difference in renovating to “upgrade” versus making essential repairs to get the house into good working order.  

For example, we reroofed this house before selling it because of the age of the roof. Some lenders will not fund a mortgage on a home that has significant repairs needed, so this update ensured that potential buyers would be able to fund the purchase.

With respect to essential repairs, we always encourage clients to tackle these projects while they are not under pressure to meet a closing date. A great person to talk to about this is your listing agent. They can give you a list of repairs that are “must-do’s” to get your home sold.

For more on this topic, check out How to Prepare a Home for Sale in this Market.

Myth 2: Even in today’s crazy market, you can renovate and get an even better price on your home.

Yes, the seller’s market has been exploding with limited inventory and soaring home prices. As a result, it’s tempting in today’s market to try and increase your home’s value with a quick renovation. 

However, the reality is that renovating during the pandemic has been a struggle, and there aren’t really any “quick” renovations. With backed-up supply chains and high-demand materials, renovations are taking longer (by months) and costing more (increased material costs). 

That means that the time and money you invest in your home is less likely to pay off or may produce a smaller ROI than you initially anticipated.

The good news? You will probably be able to sell your house quickly and at a fair price without renovating because there is such high demand.

Myth 3: Just a kitchen or bathroom renovation is an easy way to make a quick return on your investment.

Heads up: Kitchens and bathrooms are the most expensive renovations you can undertake! And high ticket projects should not be started lightly.

When we start working with clients, we always ask you about your budget for renovating a kitchen or bathroom. And then, we help you decide if your budget and renovation plan will increase the value of the home enough for a solid return on investment.

Also, are you going to want to go all-in when you are renovating for the next owner?  Would you buy the top-of-the-line appliance package for a resale even if you have a large budget for a kitchen renovation? Probably not. It is often better to let the new homeowners make the updates they want (more on this later).

So, which updates should you make?

5 Tips to Consider When Renovating Before You Move

1. Renovate for your enjoyment 

We encourage renovating long before you consider selling. Doesn’t it sound better to think about having your home in tip-top shape for your pleasure rather than for others?

When you renovate for your enjoyment, not a hypothetical customer, you get to enjoy your home instead of the stress of resale value. You are also more likely to splurge on high-end finishes and appliances because you get to enjoy them, and this makes a significant long-term investment.

2. Let the buyers put their own mark on the property

Some buyers prefer to buy a house that they can put their mark on. They want to renovate to their taste and budget. If you decide to renovate before selling, you may be wasting your investment — the new owners may go in and totally remodel your renovation to match their tastes and needs. 

Steve and I are big advocates for not investing in a full-blown renovation unless repairs are needed. Instead, you will save time and money by letting the new owners create what they want in their new home.

3. Don’t cut corners

Have you heard the saying, “Do it right or don’t do it at all?” If you can’t do a project well, meaning you don’t have the funds or time to go all-in, consider not taking the project on.

When you choose the cheapest materials with the most inexpensive labor, the work and finished product may suffer, and so will your selling price. When you cut corners, buyers will notice, or poor craftsmanship may turn up during the inspection process. As a result, they might think that the rest of the house wasn’t properly maintained or repaired. Yikes!

4. Knowing where to invest 

As I said earlier, kitchen and bathroom renovations are the most likely to help you sell a home at a higher price. (Though should be undertaken with caution.) Replacing, upgrading, or refinishing your flooring is also an excellent area of your home to invest in, as it immediately increases the value and longevity of the home.

Again, it’s best to get a professional opinion on where to invest in the home (for your particular home and the market), which your listing agent (or we) can help with.

That leads me to my last tip...

5. Hire the right people

What room should you renovate to get the best ROI? You can Google an answer or ask a friend, but when you hire a professional, we can give you a clear picture of the budget, ROI, and timeline to help you maximize your investment. 

At CKD, we value the money and time you want to invest into your property, and that means we help you make the most informed decisions about your renovations. Unfortunately, sometimes people decide to DIY their renovation and end up with regrets, which is a terrible feeling, especially when you’re trying to sell and move on with the next chapter of your life. Sound advice can ensure your journey is smooth.

We would also encourage you to listen to your listing agent. Steve and I increased the value of the home we sold in 2020 by listening to our listing agent’s suggestions, and it paid off. (You can read about it here.)

All in all, we want you to have a successful renovation that increases the value of your home. Our goal is also to work with you to ensure you have a smooth and money-making renovation experience, even if you aren’t planning to sell anytime soon. 

Give us a call and let’s see if we can help with your project.

Warmly, 

Sarah (& Steve)