People often make updates or renovations in their homes when they know that they’re going to benefit from them. They are not necessarily thinking of the financial investment alone. Yes, it will cost money to renovate a basement, but they know that they can use it as a family room for years or even decades, and that’s worth the money that they have to spend.
But what if you’ve just decided that you’re going to sell your home? Should you make renovations at this time or not? You certainly want to avoid mistakes when selling, so it’s important to consider this carefully.
There can be some advantages
In some ways, making a renovation right before selling can be advantageous. It makes the house look new and everything appears to be in excellent condition. It can cover up years of wear and tear. It generally just makes your home show better. You can also consider the things that buyers are looking for – such as an open floor plan – and make renovations that will match their expectations.
Choosing where to renovate
The important thing to consider is just which renovations are actually going to increase the value of the home. Typically, the bathroom and the kitchen become outdated the fastest. Updates in these areas can make the home feel much different and lead to a significantly increased value. It also shows the buyer that they don’t have to immediately invest in these updates if they buy the home. The work has already been done for them.
This isn’t to say that you can’t make updates in a living room or bedroom, for example, but just that they are less likely to change the value of the house.
Working through the sale
Deciding how to invest your money and how to prepare for the sale is the first step. Make sure you also know what legal steps to take and how to proceed so that the process goes smoothly.