You want to move, you need to get your home on the market and then the big question: do you sell your house as is or renovate? Both options come with their own set of advantages and disadvantages, and the right choice depends on various factors. We’re breaking down the two scenarios to help you do determine which route is best for you.
Sell As Is: When to Consider It
If you’re tight on funds, selling your house as is might be the more practical choice. Renovations can be expensive, and sometimes the return on investment may not justify the upfront costs. It’s best to consult a Realtor to see which areas of your home are most profitable to update. Our brokerage does offer a program for sellers that do not have available funds for renovations. It’s called Compass Concierge, and they offer interest-free loans to home sellers for updates and repairs that are paid back at closing. Learn more here.
Assess the current real estate market in your area. In a hot seller’s market, where demand outstrips supply, buyers might be more willing to overlook minor imperfections. On the flip side, in a buyer’s market, where inventory is high, homes in pristine condition tend to sell faster.
If time is of the essence, selling as is can be a quicker route to closing the deal. Renovations take time, and delays can occur due to unforeseen issues. If you need to sell quickly, skipping renovations might be the right choice.
Renovate: When It’s Worth the Investment
Outdated Features – Buyers want Turnkey
If your home has outdated features, such as an old kitchen or bathroom, renovating can significantly enhance its appeal. Homes with modern amenities tend to attract more buyers. In our experience, fresh paint, new fixtures, and new flooring often increase home value beyond the investment. Buyers want to walk in to a move-in-ready home, and the kitchen and bathrooms in particular are important to buyers.
In a competitive market, renovations can set your property apart from others. Energy-efficient upgrades, smart home features, and aesthetic improvements can make your home more attractive to potential buyers. A study by the National Bureau of Economic Research found that energy-efficient homes tend to sell at a premium. When we work with a seller, we are creating every advantage possible to stand out amongst the competition! See how we work with our sellers here.
Increased Property Value
Renovations can increase your home’s appraised value, leading to a higher selling price. The 2020 Remodeling Impact Report by NAR revealed that new roofing, hardwood floor refinishing, and new HVAC systems were among the renovations that most appealed to buyers. There are many things you can be doing now to your home to increase its value. It’s always a good rule of thumb to keep renovations minor to mid-range if you’re doing them to sell later. And always keep finishings classic and neutral to appeal to the greatest amount of buyers.
Making the Right Decision
Deciding whether to sell your house as is or renovate is a decision that involves considering your financial situation, market conditions, and time constraints. In the end, it’s essential to strike a balance between maximizing your home’s value and ensuring a timely and cost-effective sale. Remember, the key is to make informed decisions that align with your goals and priorities.