What Every Seller Needs To Know About Renovating This Year

1. The Number of Homes for Sale Is Very Low

Right now, housing inventory is sitting far below what is normally considered a balanced market. In fact, according to the National Association of Realtors (NAR), the latest data indicates inventory is hovering at an all-time low. Because there’s such a limited supply of homes available for sale, you’re in a unique position to benefit from multiple offers and a quick process when selling your house. But, you want to do so while buyers are still scooping homes up as fast as they’re being listed.

Spending time and money on renovations before you sell could mean you’ll miss your key window of opportunity. Of course, certain repairs may be important, or even necessary. The best way to determine where to spend your time – and your money – is to work with a real estate advisor to confirm which improvements are truly needed and which ones aren’t likely to be deal-breakers for buyers. Your mortgage professional can also help with tapping into your current equity, if necessary, to get the job done and maximize your return on investment.

2. Buyers May Be Willing To Take on Projects When They Purchase Your House

With the lack of homes for sale on the market, many buyers are more willing to take on home improvement projects themselves to get the house they’re after, even if it means putting in a little extra work. A recent survey from Freddie Mac finds that:

“. . . nearly two-in-five potential homebuyers would consider purchasing a home requiring renovations.”

If more buyers are willing to tackle repairs on their own, it may be wise to let the future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle. Depending on the structural condition of your house, your efforts may be better spent working on small cosmetic updates, like refreshing some paint and power washing the exterior to make sure the home stands out. Instead of over-investing in upgrades the buyer may change anyway, work with a real estate professional to determine the key projects to tackle that will give you the greatest return on your investment. Maximizing your sales price means you will have more leverage for your next home.

3. Your Agent Will Help You Spotlight the Upgrades You’ve Made

Over the past year, many people made a significant number of updates to their homes. The most recent State of Home Spending report finds:

“Home improvement spending rose 25% year-over-year to $10,341. Homeowners who invested in home improvement did an average of 3.7 projects, up from 2.7 in 2020. . .”

With more homeowners taking on more projects in the past 12 months, there’s a good chance you’ve already made updates to your home that could appeal to buyers, and may have already boosted your equity. If that’s the case, your real estate advisor will find ways to highlight those upgrades in your listing. The more value your house presents, the more opportunity you have to get top dollar.

The same is true for any projects you invest in moving forward. No matter what, before you renovate, contact a local real estate professional for expert advice on what work needs to be done and how to make it as appealing as possible to future buyers. Depending on the projects you want to take on, keeping in touch with your mortgage professional and completing regular mortgage checkups means that you can have a good understanding of your equity and how you can use it to maximize your investment.  Every home is different, so a conversation with your trusted professionals is mission-critical to make sure you make the right moves when selling this season.

Bottom Line

We’re facing a strong sellers market, so if you’re thinking about making renovations before putting your home on the market, you should contact a trusted mortgage professional and real estate agent to advise you on the best way to go. It’s important to spend your time and money wisely when you’re getting ready to move, so that you can get the most out of your current house to leverage the best deal on your next home. Renovations may not even be necessary, given the fact that many buyers, facing a short supply of homes for sale, may be willing to take on the renovations themselves. Connect with me today and let’s talk about your homeownership goals, I’ll advise you on your equity and financial situation and connect you with a trusted real estate partner that can help you figure out where to target your efforts before you list.