Home renovations come in a variety of shapes and sizes, from repairing and replacing features to a complete remodel. For your part, the urge to modernize is down to your desire to sell a property. Houses are tough to get off the market and a couple of new additions make them stand out from the crowd. Plus, there is the valuation element – include the things buyers want and they’ll pay more.
A home renovation seems like a no-brainer; however, it may not work out in your favor. Sometimes, they are unnecessary and here are the reasons why.
The Property Is A Fixer-Upper
Not every home is in prime condition. If you own more than one, there’s a chance it will need a hell of a lot of work to get it into a saleable position. Wires are hanging out of the walls and damp patches showing through the ceiling so it won’t go anywhere fast. Or will it? The reality is that buyers will put their hat in the ring if the valuation is low enough. Considering it will cost thousands of dollars and a lot of time and energy, it may be worth attaching an affordable price and offloading it.
Renovations Aren’t Created Equal
Only specific additions will add value to the house, such as clearing out the garden or flagging the drive. Relatively speaking, they are quick jobs and don’t break the bank. Therefore, the value added to your property will be pretty high when you think about it in terms of percentages. Other features, while they look the part, are costly and don’t add nearly as much profit. A pool is a prime example as is converting a garage into another bedroom. When the cost of the renovation eats into the resale profit, it’s not worth the money or the hassle.
Buyers Are Everywhere
To most people, the two tips above won’t bear fruit, at least that’s the perception. It’s tough to see who will stump up the cash for a property that is unfinished or doesn’t come with the right amenities. Thankfully, some individuals and companies are happy to say “we buy homes here” and they mean it. That’s why they table an as-is offer and don’t bother about repairs or fees or viewings. It may be a fixer-upper or in perfect condition yet it doesn’t matter – these people buy houses in any state.
The Market Is Volatile
Say you can guarantee the renovations will deliver a profit – should you still do it? How you decide to proceed is a personal decision, but it’s savvy to remember that nothing is certain. After all, the housing market is very volatile and can collapse at any moment as the 2008 Mortgage Crisis proved. If this happened again and you have a mortgage, you will need every possible penny to come out the other side so a renovation may be a waste.
When a renovation doesn’t add value to your home or is unnecessary, there is no need to waste your time.