When thinking about selling, homeowners often feel that they need to prepare their home with some renovations to make it more attractive to buyers. However, with so many buyers competing for available homes now, renovations may not be as vital as they would be in a more normal market. Here are two things to keep in mind if you are thinking of selling this season.
1. There are not enough houses for sale at the moment.
A normal market has a stock of 6 months of houses for sale, but the current stock of houses is well below this benchmark. According to the National Association of Realtors (NAR), there is only an offer of 1.9 month homes available today. As a result, competition between buyers is high and houses stay on the market for only 21 days, during which many receive multiple offers from hopeful buyers.
In a competitive market that is moving so fast, it makes sense to sell your home when buyers are buying houses as fast as they are being listed. Spending a lot of time and money on renovations before selling can mean that you will lose your main window of opportunity. While certain repairs to your home may be important, the best thing to do now is to work with a real estate consultant to determine which improvements are really needed and which are unlikely to be an issue for buyers.
Today, many buyers are more willing to take on renovation projects to get the home they are looking for, even if it requires a little more work. The domestic counselor explains:
“When it comes to the number of completed renovation projects, Generation Z owners are leading the pack, completing an average of 3.5 projects. Generation Y closely follows Generation Z, assuming an average of 3.3 projects, followed by Generation X with 2.8 projects. The boomers completed an average of 2 projects, and the Silent Generation completed the lowest number of projects, on average, 1.8 per household. Compared to 2019, the millennial generation is spending 60% more on home remodeling and doing, on average, 30% more projects. "
In this market, it may be advisable to allow future owners to remodel the bathroom or kitchen to make the design decisions best suited to their specific tastes and lifestyles. As a salesperson, your money and time can be better spent working on small cosmetic upgrades, like refreshing some paint and washing the exterior with energy. Instead of investing too much in your home with updates that buyers can change anyway, work with a real estate professional to determine the major projects that will maximize your listing, without overdoing it.
2. Focus on getting a good return on investment.
When planning any larger project, you and your realtor will want to discuss the potential return on your investment and whether those projects are worth the cost. Some houses need renovation in the kitchen or bathroom, roof repairs or other important works, but definitely not all. You may be surprised at how well your home could perform in today's seller's market. Hanley Wood says:
“The Cost vs. Report The 2020 figure shows a predictable increase in costs for all 22 remodeling projects, but a consistent drop in the perceived value of these projects at the time of selling the home, as estimated by real estate professionals in more than 100 metropolitan areas across the U.S. This results in a slight drop in the return on investment for almost all projects in relation to the trends we saw in last year's report. "
Ideally, homeowners who are preparing to move should try to avoid over-investing in major renovations if they are unable to recover the money when they sell the house.
According to the Home Advisor's state of household spending 2020 report:
“Average household spending on household services has risen to $ 13,138, an increase from last year's survey results, where project owners spent an average of $ 9,081 in 2019.”
Before renovating, contact a local real estate professional to see if it is the best course of action. You may find that placing your home on the market in the state it is in will help you sell quickly and may result in the best return on your investment. Each home is different, but a conversation with your agent is essential to ensure that you take the right steps when selling this season.
We are in a strong sellers market, and that means you have the advantage to sell your home on your terms. Let's connect today to determine if retirement is really the best way to spend your time and money before selling.
The information contained and the opinions expressed in this article are not intended to be interpreted as investment advice. Keep Current Matters, Inc. does not warrant or guarantee the accuracy or completeness of the information or opinions contained herein. Nothing here should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keep Current Matters, Inc. will not be responsible for any loss or damage caused by your reliance on the information or opinions contained herein.
We believe that every family should feel confident when buying and selling a home.