June 28, 2024 In Videos

Discover if renovations will boost your home’s value or just add more work

One of the most common questions I’ve received this year is: “Will I make more money if I upgrade my home before selling?” Many homeowners wonder if renovations like a new kitchen, updated bathrooms, backyard landscaping, or adding a pool will boost their home’s value, or if it’s just a lot of work with little financial return.

The truth is, it varies for each person and each home. My wife Halley and I move every two years to avoid capital gains tax. We buy a home, fix it up, live there for two years, and then sell. Through our experiences and investing in real estate, we’ve faced the same question you have.

Here’s how I determine if upgrades are worth it:

Evaluate Current Value: First, I look at the value of homes comparable to mine in their “as is” condition. I calculate a seller net sheet, including purchase price minus closing costs like attorney fees, deed stamps, insurance, real estate commissions, and my mortgage payoff. This gives me a clear picture of my net proceeds without any renovations.

Assess Upgraded Value: Next, I examine homes in the market with similar upgrades—new kitchens, updated bathrooms, enhanced backyards. I estimate what my home could sell for after similar renovations and create another seller net sheet, adding in the renovation budget.

Sometimes, the net proceeds after renovations are the same or even less than the “as is” condition. Other times, the right upgrades can significantly increase your profit. Not all upgrades are created equal, so it’s crucial to identify the renovations that will add the most value.

Every seller’s situation is unique. That’s why a customized approach is essential. I offer a personalized service where I visit your home, estimate renovation budgets, and compare the potential added value. Together, we can create different seller net scenarios to determine the best strategy for maximizing your profit.

You may find that selling “as is” is the best option, or that specific upgrades can lead to a higher net profit. Understanding all your options allows you to make the best decision for your situation.

If you’re considering selling your home and wondering about upgrades, give us a call today. I’d be happy to walk through your home and provide a customized analysis tailored to your needs.

Thank you for considering us, and I look forward to helping you make the most out of your home sale.

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