In the current sellers’ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. That’s where a trusted real estate professional comes in. They can help you think through today’s market conditions and how they impact what you should – and shouldn’t – renovate before selling. While properties may sell with or without renovations, significant money has been left on the table when property prep isn’t done and properties don’t sell as quickly. We take a ROI approach, were every dollar you put in should return two dollars back. Journey Real Estate also partner with a company called Revive, who fronts the money for property prep, so Sellers can renovate with $0 out of pocket on the front end and contractors are paid through the close of escrow from the proceeds. *Ask our team for more info on this.
Here are some considerations a professional will guide you through:
1. With current supply challenges, buyers may be willing to take on projects of their own.
A more balanced market typically sees a 6-month supply of homes for sale. Above that, and we’re in a buyers’ market. Below that, and we’re in a sellers’ market. According to a recent report by the National Association of Realtors (NAR), our current supply of homes for sale, while rising, still remains solidly in sellers’ market territory:
“Unsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from May’s 2.5-month supply but down from 3.9 months in June 2020.”
Here in Marin County, the supply is even lower depending on the city and price point. San Rafael and Novato have more inventory in general. Then, there are areas like Tiburon and Belvedere have higher price points, so properties don’t sell as quickly.
So, what’s that mean for you? If you’re a seller trying to decide whether or not to renovate, this is especially important because it’s indicative of buyer behavior. When there aren’t enough homes for sale, buyers may be more willing to purchase a home that doesn’t meet all their needs and renovate it themselves later. We can help you draw those lines.
2. Not all renovation projects are equal.
You don’t want to spend time and money on a project that isn’t worth the cost or is too niche design-wise for some homebuyers. According to an article by Renofi.com, basing home updates on what’s trendy right now can be a costly mistake:
“The last thing you as a homeowner want to do is center your home design around a passing fad – even worse, one thats design quality won’t last a good while.”
Before making any decisions, talk to your real estate advisor. They have insight into what other sellers are doing before listing their homes and how buyers are reacting to those upgrades. Don’t spend the time and money to be trendy – if your buyer wants to upgrade to the newest fad later, they can.
No two properties are alike. We are currently preparing two listings in San Rafael and Novato. One is a fixer and the Seller is investing only in cleaning. The other is over 4,000sqft and we are working on an $80k renovation with staging, where they will get a good bang for their buck. Again, we take an ROI approach.
3. If you’ve already made upgrades this past year, your agent can help spotlight them.
If you have already completed some renovations on your house, you’re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects. HomeAdvisor’s 2021 State of Home Spending Report found:
“35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.”
Let your real estate professional know if you fall in this category. They can highlight any recent upgrades you’ve made in your house’s listing. To compliment the often dry disclosure packet, we often include a letter from the Sellers, which highlights work done and why they love their home.
Bottom Line
When it comes to renovations, your return-on-investment should be top of mind. Let’s connect today to talk through any upgrades you’ve already made and to find out what you should prioritize before you sell to maximize your house’s potential. As always, the Journey Real Estate team takes a consultative approach and creates a customized plan for each client.