This is the eternal conundrum when selling a home, should you renovate?
In a sellers’ market which is where Los Angeles is currently with its low inventory you would think that you can just put your home on the market and it will sell. Sometimes this is the case, certainly if an investor is involved, as they are going to remodel and flip the home, and they are not going to pay top dollar. For your average home buyer price is still a factor.
When it comes to the point where you have decided to sell you are going to have a price in mind. That price may or may not be a realistic one. When you work with a Realtor® they will help you understand the correct pricing of your home by comparing it with recent sales in the area. Sellers’ market or not buyers are still savvy, want what they want and are generally not willing to overpay. If your home is not in the best of shape it might sit on the market for a while, especially if you are trying to price it the same as a home which has been upgraded, and you may find that you will receive lowball offers, because buyers are calculating how much it will take to upgrade the home themselves.
You certainly don’t have to renovate your whole home, and it is not advisable because you will probably not get your money back but, according to HGTV, here are four areas where minor improvements should get you the highest return on your investment, and which will help you sell faster at a fair price.
Bathroom: Simple things like replacing a shower door, and reglazing the tub can can give it a fresh look. This shouldn’t cost more than a few hundred dollars. Replacing a tub, tiles, fixtures, etc. should cost around $10,000 give or take, but you should get a 102% return.
Kitchen: A simple remodel of this should get you around a 98% return. A low budget option is to reface cabinets which can really brighten up a tired kitchen. For a more ambitious project, change out the cabinets, stove top, sink, fixtures, counter tops and flooring.
Landscaping: You should get 100% return here. The first thing a buyer sees is the curb appeal of your home. If you make this welcoming then you will attract more buyers into your home. Consult with a landscape designer or a local garden center for assistance.
Exterior: A house that shows wear and tear from the outside is also not a welcoming site for your prospective buyers. A fresh coat of paint in a neutral color, and repair of things like a damaged fence or railings can only help the value of your home. Your return here should be around 95%.
Be aware that even though you make these upgrades there is no guarantee that the new owner will not tear everything out and renovate to their own tastes. Not having the same taste as you is not the same as having to make upgrades because of deferred maintenance. The former is no excuse for not meeting the fair price of the home. The less a buyer HAS to do the MORE you will get.
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