I know what you’re going to say. “But our kitchen is outdated and everyone has said we should remodel to sell!”
Let’s focus on two key factors. First, what your future buyer wants. And second, what is in your best interest – financially and in terms of convenience.
Let’s talk about your future buyers. How do we know what buyers want and need? Simple – we ask them! According to the National Association of Realtors, more buyers would rather do the remodel themselves to get the styles and features they actually want. The one caveat is that the home must be in good working order. Personal tastes and styles differ widely. Your idea of the perfect kitchen might not match what a prospective buyer has in mind. Plus, in a hot market, buyers are prioritizing a great floor plan, regardless of the kitchen, due to the low amount of inventory and choices available.
Now let’s talk about money – specifically your equity. Local real estate companies are coming up with creative programs and loans to entice you to make big changes to your home. But what is the cost and benefit to you? Sure, the home will look better. But you will be spending your equity, and it simply does not net a profit. In fact, industry cost versus value reports show that it’s not even close. Recently per CNBC.com, for those who remodel, the average payback in a home’s resale value is 56 percent of the cost of the remodel.
The goal is to net the most from your home when you sell. And depending on timing, waiting on your remodel may cost you in a hot market. And who really wants the added stress and burden that comes with a remodel?
Get your home in the best possible condition with only a few cosmetic touches to give it a fresh look. Here are 5 simple improvements:
- Clean! Start with a deep clean and declutter. Now is a great time to get the carpets cleaned too.
- Paint cabinets and walls. This can be done in a few days for very little money.
- New hardware. On cabinets, doors, light fixtures, or even outlets.
- Fix anything broken.
- Fresh landscaping. Add fresh mulch and flowers.
Bottom line just be aware of what you are spending to sell your home. Realize that if you decide to spend major money to remodel, it’s unlikely to increase the value of your home enough to cover your costs.
~Tiffany Stock with Keller Williams Realty Danville
Contact me at TiffanyStock@kw.com