In my 20 years of working with buyers and sellers, there is one absolute that had not changed over that time. Everything else being equal, the better maintained homes sell quicker and for more value. It’s crystal clear that homes remodeled have advantages, but is it possible financially or might time restraints be in play. Making major alterations to a home can be expensive and time-consuming. Should we make these improvements or start marketing without is a dilemma facing many families today.
It is important to understand how the sales price for any house works. A house has a maximum price – the price it would be worth if it was brand new. That price is the ceiling so to say, and without remodeling it’s very unlikely to sell for more. On the other hand if the house is not brand new than it will sell for less than this theoretical ceiling price. In essence, instead of thinking “How much more will a house sell for if it’s renovated” you should think “How much less will it sell for because it’s not renovated.” This type of thinking more closely resembles the thinking of a buyer, and allows you to put yourself into buyer’s shoes and see from their perspective.
Now that you know how buyers think it should be easy to realize that the buyers will pay less for a house that has “problems” or at least anything that buyers perceive as problems. As such it’s not as much about if the house is newly renovated or old, but rather do buyers see it as a negative or not? For example, a five years old kitchen that is kept in a nice, clean condition is unlikely to be seen as a problem even though it’s not bran new, yet a newly painted siding might be seen as a huge negative if it’s been painted bright orange – not everyone wants to buy an orange of a house.
A home remodel should be considered on an individual basis. What’s good for one family might not make sense to another. Will a remodel make a difference in the value? Absolutely. but with the lack of available inventory today, just getting your home on the market is just as important. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.