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Remodel to Sell?

There could many things that have lead you to the decision to sell. Realistically, we would be remiss in our duties if we didn’t advise that it can and does happen that you need to sell; sometimes when you aren’t fully onboard with the notion. While we want investors that we deal with to make the best decisions when owning and operating real-estate, it’s also necessary to help you make the best decisions when/if it comes time to sell. Thusly, we periodically, provide you with tips to set and get your asking price.

There are four times, after purchase, that you may be considering remodeling: immediately after purchase, improvements to match new trends in the industry, to correct damages caused by tenants, and prior to sell. The first three are likely easy decisions to make, but the last one you need to be careful in putting too much money into a home you’re no longer going to own. Now can be the worst time to put money into something that is not going to translate into profit at sell.

It’s the million-dollar question that sellers ponder before putting their home on the market: Should you remodel to sell? There are other questions, whose answers may lead you to more easily answering that bigger question.

  1. Does my home stack up to my competition? Any improvements that you’ve been putting off, or deciding against may need to be revisited. You need to make sure than your home makes the potential buyers’ “short list”. When first glance at what your homes has to offer, you don’t stack up, that will translate into little or no showings.
  2. Have other resales in your area been updated? If your competition (i.e., comparables) are new and improved, then your competition is dictating that you, too, need to improve.
  3. Is there also new construction that buyers might be looking at? A new/newer home is often going to be a desired type due to the issues that may be found in an older home. While you might not be able to compete with certain aspects, not everyone believes that a new penny is all the rage. The things that drew you to the home, might be the same things that will draw the next buyer. In that case, remodeling is likely unwarranted.

You’re certainly not going to be advised to add a pool. While you may get some looks on improvements like that, it’s rarely going to translate into a dollar for dollar return, let alone profit. This is where a relationship with a competent, reputable realtor is going to be a necessity. Unless you’ve made investment real-estate your life, you’re going to need the help of someone that knows the industry and, specifically, the market in your area. That knowledge will be able to tell you what has been selling, properly evaluate your home, and guide you towards where and how to spend money. Relying on the experts is the best return on your investment in the world of investment real-estate.