When it comes to selling a home, there are many things you need to consider. For example, homeowners might feel that they can renovate their house before putting it on the market to make it more appealing for buyers. However, with so much competition from other would-be buyers right now, renovations may not be as vital as they usually would be during regular times. If you’re considering listing your property this season, here are two helpful tips:
There aren’t enough homes for sale right now.
The housing market is a competitive game where there should be enough homes for the buyer to choose from, but that has not been the case recently. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, today’s inventory only lasts an average of 21 days, and buyers have had many offers on their dream home before it even hits the market!
If you’re looking to sell your house in a competitive market, it’s important not to waste money on renovations before listing. You have the best chance of selling quickly if there are no deal-breakers for buyers currently listed (such as outdated features or lack of updates). Talk with an expert about which improvements will be necessary and which ones can wait until after you move out.
Today, many buyers are more willing to take on home improvement projects themselves to get the home they’re after, even if it means putting in a little extra work. Home Advisor explains:
“When it comes to the number of home improvement projects completed, Gen Z homeowners are leading the pack, completing an average of 3.5 projects. Millennials closely follow Gen Z, taking on an average of 3.3 projects, followed by Gen X at 2.8 projects. Boomers completed an average of 2 projects, and the Silent Generation completed the fewest projects, on average, at 1.8 per household. Compared to 2019, millennials are spending 60% more on home improvement and doing on average 30% more projects.”
Focus on getting a good return on your investment.
The best way to gauge if any major project is worth your time and money in today’s competitive home sellers’ market, you’ll want to consider the return-on-investment (ROI). Certain projects might cost a lot more than they’re worth for potential buyers. High demand but low inventory means that most people will be willing to pay anything just as long as it’s new enough or has all the bells and whistles.
Ideally, homeowners getting ready to move should try to avoid over-investing in extensive renovations. According to the 2020 State of Home Spending report from Home Advisor:
“The average household spending on home services rose to $13,138, an increase over last year’s survey results, where homeowners who did projects spent $9,081 on average in 2019.”
When you are ready to sell your home, make sure that it looks its best for potential buyers. You should consider the state of repair and whether a renovation is in order before putting it up on the market to not deter from any possible profit margins. A conversation with a Martino Realty Group professional will be most effective in determining if renovating is the best way to spend your time and money before selling. Please reach out to us at charles@martino-realty.com today!
