Existing home sales have started to dip, granted only by 2%, as first-time buyers find themselves priced out. This comes from an analysis from leading economists.
The dip is the first cline in 2021 in 14 months, meaning that the red-hot real-estate market is still molten for much of the country, just not heading to another record-setting month.
So if you are contemplating putting your house don’t the market, what should you do. Well, taking on home renovations for a better sale price may not be the answer.
There are several reasons for this; some lie in your justifications for selling, and others are related to the market.
In the following article, we’ll deliver some real estate advice to consider when contemplating a renovation to sell your home.
Are You Set on Moving?
Since 2020 a real estate panic has gripped the market that few have ever experienced before. Bidding wars, tight inventory, and an exodus to the suburbs and country not witnessed in some areas in an entire generation have made people not remotely interested in moving in 2019 to consider putting their home on the market in 2020.
Some sellers have a sky-high price in their mind and sell to make a killing. Others just wanted to know what their house would fetch. Still, others wanted to relocate legitimately and thought 2020-2021 was the time to make a move.
But if your reason is to make money and sell a house fast, do not waste your time with a renovation. There is no reason to expect the real estate market to get hotter as things slowly get back to normal. So if you want cash and you want it now, don’t wait and sell.
Are the Home Renovations Necessary?
However, if you know your roof leaks or if your foundation needs its French drains redone, do it before you sell.
These types of repairs can eat up a lot of your time and negotiating capital. You don’t need to stress cosmetic restorations, but you should consider taking care of items that are sure to get a home inspector’s notice and possibly get subtracted from the asking price.
Granted, some buyers may be desperate enough for a home with serious issues, but many won’t because it’s a bad investment.
Also, you may find yourself getting a better price finding a contractor to do the job in advance than you would under the gun of a closing date.
Will the Renovations Add Major Value?
While most renovations are unnecessary to sell your Chicago house, there are some you might want to consider. For example, new bathrooms and kitchens are probably too expensive to add value, but renting a dumpster and decluttering your home or having your hardwood floors refinished could add thousands of dollars to the sale.
First off, you throwing out or boxing up all the clutter in your home will need to get done anyway if you move. Secondly, your home will sell quickly without all your junk in it.
As for the floors, getting a professional to refinish your existing hardwood floors is a great way to spend a little for a significant return on investment. It’s relatively inexpensive and gives your home a Wow! Factor.
Consult an Expert
If you have questions about if a renovation is worth it, you can reach out to a real estate expert or if you want a good sense of necessary repairs and their cost, hire a home inspector for your own home.
That way, when you sell, you’ll know what problems exist, what they may cost to fix, and if the home inspector has seen similar issues at other sales.
Inspectors are an excellent resource for home renovations.
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