Do I need to make major home improvements before I put my house up for sale?
We’ve already discussed that improving little things in your home (like fresh paint, new doorknobs, decluttering, etc.) can make all the difference in how quickly your home sells and the price it sells for. But what about making major improvements to your home? Would it be worth your investment?
There are some home improvements that have been shown to add value to your home and/or speed up the selling process. Then there are other improvements that suit personal taste and don’t really add much value to the home.
Some of the value-added home improvements include adding central air conditioning, refinishing the basement, building a deck, remodeling the kitchen (updating cabinets, countertops, appliances, etc.), and installing new floor coverings. Things like fireplaces and pools don’t really add much value to your home, as they tend to appeal more to personal taste, so the return on those investments would generally be less than their cost.
The challenge, then, is to recover your investment. You will have to be careful, because when making improvements, there is always the risk of improving your house TOO much, which means that the prices in the neighborhood will not support the amount of money you invest in it. So how do you know how much to improve is too much? It has been found that no matter how much a home improves, it is unlikely to sell for more than 15% of the median price of other homes in the same neighborhood. Therefore, if you have a real estate agent, you can ask their opinion before starting any major renovation.
How about saving some money and doing the renovation yourself? Sounds like a good idea! If you have the time and talent to do the job, DIY improvements would be the most cost-effective route. Just make sure you don’t take on any projects you don’t have experience with or can’t handle. If you are inexperienced, it may be worth calling in a professional. Otherwise, you could end up spending MORE time and money in the long run!
When it comes to larger jobs like heating, electrical, or plumbing, don’t forget that there are local building codes that must be followed. So even if you DO know what you’re doing, it’s probably best to have a licensed professional take care of it. This serves as protection and will prevent you from being liable in the event that something goes wrong after closing.
Whatever you choose to do, be sure to do your research! Find out what your neighborhood will support and don’t make major improvements that won’t give you a return on your investment.