Pros and Cons of Presale Renovations

Getting ready to sell often starts with cleaning and staging. But what about major updates?

While a remodel can make your home stand out, it can also delay your sale and cut into profits.

Is it worth the effort? Let’s explore the pros and cons of presale renovations.

Pros

A freshly remodeled, move-in ready home is likely to attract more buyers. Homes that boast the latest technology, efficient systems and modern finishes are simply more appealing on paper, online and in person. Strategic updates can help warrant an increased asking price and may give your home a competitive edge, depending on the market.

Cons

Renovations can be stressful, disruptive and often cause unexpected delays, which can be costly in a shifting market. Even if everything goes to plan, there’s no guarantee you’ll recoup the costs. They can even turn off buyers who may not share your vision.

Cost Recovery

The NAR estimates homeowners can recover 100% of the costs of a new steel front door and 80% for fiberglass. So that’s a good (and relatively affordable) place to start.

Updates that increase usable square footage and functionality are also cost-effective. The NAR estimates a cost recovery of 71% on basement conversions and 67% on attic conversions. Homeowners can also expect to recover 60% on complete kitchen renovations and 50% on bathroom renovations.

Verdict

Most buyers are looking for turnkey homes with all the modern conveniences. If your home lacks the features of comparable properties in your market, a few updates could help make your listing competitive — especially in a buyers’ market. In a fast-paced sellers’ market where extensive updates can cause costly delays, however, making strategic touch-ups can be enough.

Thinking of renovating anytime soon? Reach out to discuss your financing options.