Renovations are necessary to the success of selling a home.
It may seem a bit counterproductive to remodel a home right before selling it. However, this is actually a smart decision on the part of the agent as well as the seller. As we all know, first guesses often sound logical but turn out to be detrimental in the long run. Remodeling or renovating right before selling, however inapparent, is recommended by agents for several reasons:
Recovering costs upon sale
Renovation always increases the selling price because more work has been put into the home before sale. By conducting renovations in a home, you very well may be able to sell it for the same price (or higher) than what you paid for it.
This is the reason why many agents suggest renovations before a sale is complete: profit. This helps both the seller and the agent by creating a profit margin that can be gained depending on how much effort is put into the renovation process.
For many buyers, an open house or a listing is the first impression they’ll have on the home – and many are quick to make snap judgments. Homes are all about appearance and if there are paint chips, leaky faucets, insulation issues, etc., the home will not seem as attractive to a potential buyer. It is best to fix all issues before the home is viewed.
New is always better
The phrase, “out with the old and in with the new” plays a strong role in real estate. No one wants to buy a home that is out-of-date on its amenities. By “updating” your home, you’ll make it more of an interest to potential buyers.
Refurbishing is cheaper than replacing
Replacing an entire kitchen or roof inevitably will cost much more than simply repairing the existing one. Changes will have to be made in order to accommodate for the new tenants, but renovating will be a much better route in the long run than replacing altogether.