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So, you’ve decided to sell. Now what? Should you complete the full kitchen remodel that you’ve been talking about but never got around to? Does it make financial sense to refinish the hardwood floors? Home renovations can be pricey, and it’s not always clear how much, if anything, they’ll return. We’ll review a few considerations that come with remodeling with the goal of selling.
In This Post:
Pros of Remodeling Before Selling
The biggest potential pro of remodeling your home before selling is that it could help you sell faster and for more money. Home buyers may be more willing to put in an offer on a home that’s been recently renovated. They may also offer more since they won’t have to put as much money into the home if they do buy. Renovating to today’s design trends can also make your home stand out in a competitive market. Buyers may be more willing to choose your home if it’s the most updated.
Cons of Remodeling Before Selling
Of course, the biggest consideration of remodeling before selling is that it can be expensive and time-consuming. Most sellers would rather put that money into their next home, whether toward closing costs or renovating to turn it into their dream home. Selling a house can also take up a lot of your time, and adding remodeling projects to that can leave you with little time left in the day. Depending on how long it takes to hire a contractor in your area, it could also significantly delay the timeline until you’re ready to sell.
To Remodel or Not To Remodel?
Whether or not you should remodel your home before selling depends on a number of factors, including your home’s condition, your available resources, and the local market. Review what homes are selling for in the Dallas market and for how much. Do home buyers in the area want homes that have recently been remodeled? Do homes with recent remodeling sell faster and for more money?
Of course, you’ll also want to consider your ability to manage renovation projects. You’ll have to hire contractors, pull permits, choose materials, and oversee the work. Price out any projects you’re considering and then compare that to the potential increase in your home’s listing price to decide if it’s worth it. Don’t forget to factor in time spent and any costs related to waiting to list your home.
Alternatives To Remodeling
You may still be able to sell your home without making any repairs or renovations. If your home is habitable, you can still list it traditionally. You could also sell to a cash buyer.
Cash buyers purchase homes as is, meaning you don’t have to make any repairs or renovations. In fact, selling your home to a cash buyer can be much easier. You don’t have to work with strict financing requirements, which can also speed up the timeline until closing. Your selling fees are also much less with a cash buyer. In a traditional real estate sale, the seller may pay as much as 6 % to 10% of the home’s sale price, which could result in thousands of dollars. Cash buyers may cover the total cost of the sale, depending on who you sell to.
What Is an As-Is Home?
An as-is home is a property that’s sold in its current condition. When a property is not sold as-is, the potential buyer may schedule and pay for an inspection. Depending on what the inspector finds, the buyer may request that the seller make certain repairs. If the seller denies those repairs or renovations, the buyer can back out of the deal. However, an as-is property means the seller is not interested in making any repairs. So, for the people looking to sell a house fast in Dallas, selling as-is may be the best option.
Do As-Is Homes Sell?
“As-is” in the real estate industry has gotten a bad name. When many people hear “as-is,” they think uninhabitable or condemned. However, this isn’t the case. An as-is home may only need minor repairs. Some as-is homes may not even require any repairs, and instead, the seller simply doesn’t want to clean or move out personal belongings from the property. As-is homes can and do sell. Depending on how competitive the market is, as-is homes may even receive multiple offers. Of course, the fastest way to sell your home is with a cash-buying company.
Remodeling your home before selling could get you more offers. However, receiving more offers isn’t a guarantee just because you update a few rooms in your house. Before spending valuable time and money on remodeling projects, make sure you compare the pros and cons. Selling your home for cash also means you don’t have to make any repairs or renovations.
