Should you renovate before selling your home?
Deciding whether to renovate your home before putting it on the market is a significant decision for any homeowner. While a well-executed renovation can increase your property’s value and attract more buyers, not all upgrades offer a good return on investment (ROI).“Real estate markets vary significantly from one area to another. In some markets, buyers might expect move-in-ready homes, making renovations more critical. In others, buyers may prefer properties they can customise themselves,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
Apart from buyers’ preferences, the state of the current property market in the area will also play a factor in whether to renovate. “In a seller's market, where demand exceeds supply, you may not need to renovate much, as buyers are often willing to pay a premium for any available property. Conversely, in a buyer's market with ample inventory, renovations can help your home stand out and attract more interest,” Goslett explains.
He suggests that the best way to learn about local market conditions is to speak with a local real estate agent. This will help you understand what buyers in your area are looking for and how renovated homes compare to as-is sales in your neighbourhood.
If you decide to renovate, Goslett recommends focusing on high-impact areas. “Certain renovations consistently provide better ROI than others. For example, kitchens and bathrooms tend to be expensive and inconvenient to renovate, so giving these areas a cost-effective refresh could add a lot of value,” he states.
Before committing to any renovations, Goslett also recommends creating a detailed budget and researching the potential ROI. Find out what homes with similar upgrades in the area have sold for to determine whether you will make the money back that goes into the renovation.
“Renovating your home before selling can be a smart move, but it’s not always necessary. Consult with a real estate agent and possibly a contractor before making any decisions. By carefully weighing the costs, benefits, and market dynamics, you can make an informed decision that aligns with your financial goals and timeline,” he concludes.