Spending money on a property to achieve a better price is only worth doing if you can get a return on your investment. For example, if you spend $10,000 on a new kitchen, but only make an extra $5,000 on the sale price over and above the original valuation, you have lost money and the renovation was not worth your time or investment. However, if your $10,000 kitchen helped you achieve a sale price $15,000 more than the original valuation, it was money well spent.
Take Advice from an Experienced Realtor
To help you make the right decision, have the property valued by an experienced realtor in its current condition. Pick their brains and let them advise you on whether it is worth spending money on the property. This will depend on the current market conditions, as well as the type of buyer you are hoping to attract.
For example, if you check out homes for sale in Cedar City Utah and discover that there is a big demand for family properties, which is exactly what you are hoping to sell, you may not need to spend any money on yours to achieve a good price. However, if the market is stagnant and buyers are spoilt for choice, it is worth going the extra mile to achieve the sale.
The Current State of the Property
If the property is in a very poor condition and you would need to spend a considerable amount of money bringing it up to scratch, it probably isn’t worth the investment. In this instance, market the property as a “project” so the buyer is starting with a blank canvas.
For homes in better condition, remember that you don’t need to spend a huge amount of money to maximize your return on investment. A general makeover may be enough to attract a wider number of buyers. Renovations that are more expensive could make your property too expensive for the target market, which defeats the object of the exercise. So instead of installing a $10,000 kitchen, paint the existing one, replace the floor and countertops, and give the whole place a good clean.
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Can You Afford to Renovate?
Irrespective of whether a renovation project is worth doing, consider whether you can afford to spend money on the property before you sell. There are moving costs to consider, as well as potential renovation costs on your new property to budget for.
Don’t bother renovating prior to the sale unless you can afford to do the work and the return on investment justifies the cost. In most cases, you are better off giving the property a makeover instead.