In the current sellersâ€™ market, many homeowners wonder what, if anything, needs to be remodeled before they list their house. Thatâ€™s where a trusted real estate professional comes in. They can help you think through todayâ€™s market conditions and how they impact what you should â€“ and shouldnâ€™t â€“ renovate before selling.
Here are some considerations a professional will guide you through:
A more balanced market typically sees a 6-month supply of homes for sale. Above that, and weâ€™re in a buyersâ€™ market. Below that, and weâ€™re in a sellersâ€™ 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 sellersâ€™ market territory:
â€œUnsold inventory sits at a 2.6-month supply at the current sales pace, modestly up from Mayâ€™s 2.5-month supply but down from 3.9 months in June 2020.â€
So, whatâ€™s that mean for you? If youâ€™re a seller trying to decide whether or not to renovate, this is especially important because itâ€™s indicative of buyer behavior. When there arenâ€™t enough homes for sale, buyers may be more willing to purchase a home that doesnâ€™t meet all their needs and renovate it themselves later.
You donâ€™t want to spend time and money on a project that isnâ€™t worth the cost or is too niche design-wise for some homebuyers. According to an article by Renofi.com, basing home updates on whatâ€™s trendy right now can be a costly mistake:
â€œThe last thing you as a homeowner want to do is center your home design around a passing fad â€“ even worse, one thats design quality wonâ€™t last a good while.â€
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. Donâ€™t spend the time and money to be trendy â€“ if your buyer wants to upgrade to the newest fad later, they can.
If you have already completed some renovations on your house, youâ€™re not alone. The pandemic kept people at home last year, and during that time, many homeowners completed some home improvement projects. HomeAdvisorâ€™s 2021 State of Home Spending Report found:
â€œ35% of households that completed an improvement project undertook some type of interior painting, while 31% completed a bathroom remodel and 26% installed new flooring.â€
Let your real estate professional know if you fall in this category. They can highlight any recent upgrades youâ€™ve made in your houseâ€™s listing.
When it comes to renovations, your return-on-investment should be top of mind. Letâ€™s connect today to talk through any upgrades youâ€™ve already made and to find out what you should prioritize before you sell to maximize your houseâ€™s potential.