Should A Homeowner Invest In Their Home Before Selling?
Before you put your home on the market, you will probably have to spend some money painting or generally sprucing up the property. In some cases, however, you may have to invest some money in upgrades to make your home competitive in the current real estate environment. It is a delicate balancing act between the amount you may need to spend on your home and what you can expect as a return on investment (ROI).
If your roof is not in good shape, repairing or replacing it before putting the home on the market is vital. For many homebuyers, an older roof that leaks or has leak potential proves a deal breaker. They certainly know they will end up having to replace it themselves sooner or later, and might demand a considerable reduction in the selling price.
Although the price of a roof varies according to the size of the home and materials used, it does provide a reasonable ROI. Another advantage –a contractor can put repair a roof in just a matter of days, as long as the weather is good. That’s not usually an issue in Hawaii. Although there are some inconveniences for the residents while the roof is replaced, it is just a short-term issue.
Many buyers look at the kitchen first and foremost when making a home purchase decision. If your kitchen is less than stellar, that does not necessarily mean you must go through a major remodel. Often, a smaller remodel in the kitchen will help sell the house without the high price and huge inconvenience –possibly months or a year or more –of a full remodel.
For example, a minor remodel has an ROI of as high as 80 percent, while the ROI for a complete remodel hovers around the 60 percent mark. One caveat: If you decide to go with the full remodel, never spend more than 15 percent of the house’s value on the project. You will not recoup those funds.
Updating a tired bathroom or adding a new one helps sell your house and usually provides a good ROI. Sometimes, replacing the fixtures and redecorating, as well as tile recaulking, is all that is needed to make the bathroom more appealing. If you decide to renovate totally, go with a mid-range rather than an upscale renovation for best ROI.
A home that doesn’t require much, if anything, in the way of repairs is much more attractive to buyers. If you want to sell your house as-is, expect not only to receive less money for it, but those attracted to it may look specifically for a fixer-upper they can purchase for as little as possible.
On the other hand, you do not want to put so much new money into your home that you receive little or nothing in the way of ROI. Your real estate agent can advise you on the best type of upgrades for your particular dwelling, and what they may add in value in the present market.
If you’re looking to buy or sell a home or find a rental property, you need a knowledgeable, experienced realtor familiar with every aspect of the Hawaiian real estate market. Contact Island Realty Group LLC at 808-689-7407 or IslandRealtyGroup@irghi.com.
January 28, 2020