Let us consider the possibilities when you are at the juncture of selling, renovating or renovating and selling a home. You may sell your home and move into another address, perhaps a new home. You may renovate your home and continue to stay in it, since it would be like new again. You could renovate your property and then sell it. Subsequently you may move to a new home yourself or another property if you have one.
Selling your home without renovating is acceptable and so is renovating and selling. Renovating and staying instead of selling is a different ballgame.
Renovate and Stay
When you know you would be staying at the address for many years and you don’t want to buy a new home or sell your existing home, then it is better to renovate and stay. You could spend a fair bit of money on renovations but staying in that house would more than recoup that investment for you. The resale price will go up so you would get a much better return when you sell a few years later. By going this route, you can choose fittings and fixtures that you love, making the value more important than the monetary aspect.
Selling without Renovating
You can sell a property outright in as is condition. This is the simplest way to go about selling a home. However, there can be some challenges. If there is something wrong with the property, if it is very old, if it is not attractive or appealing enough, if it doesn’t get a good price and if it doesn’t get buyers interested, then you would either get a very poor deal or your property won’t sell. You would have to consider renovation. The flipside is you don’t have to spend on renovation and make whatever profit an outright sale gets you.
Renovating and Selling
This makes sense when you know that you can recoup the cost of renovation through the appreciated sale price. It is quite possible that a house priced at four hundred thousand gets renovated with an investment of fifty thousand and gets sold at five hundred thousand. There is a net profit of fifty thousand more. However, there is the risk associated with making that kind of an investment. What if you don’t get the desired ask price?
You must work with your real estate agent to understand the market, what the buyers are looking for and according to the needs of your property you should decide if renovating is a good idea. You can also choose DIY renovations instead of hiring a professional. That will be economic.
