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Why Pre-Sale Renovations are a must!

By
Real Estate Agent with Long & Foster Realtors

Whether you are looking at luxury homes or any home, buyers today demand homes to look fresh and updated!   Competing with new construction sets the bar of what consumers want and look for in any home they purchase.  They'd rather pay a higher price for a home, then purchase one which needs updates and money they just do not have!

"Which projects carry the most reward?   Upgrades that elevate the home on a cosmetic level, as well as in functionality give the biggest bang for the money.  . According to Diane Hartley, president of the Institute for Luxury Home Marketing (ILHM), renovating before putting a home up for sale is "critical," especially for resale homes—and selling it faster and at a higher price are two of the biggest benefits, she says. The biggest competition for resale luxury homes is the new-construction market, which are typically valued higher than their resale counterparts, even if the resale properties feature similar square footage and footprints."

The largest group of buyers are the melinnials, they are the ones who are visiting new home ( new constuction) so when they visit one of our listing which feels old and dated, they head over and paythe high prices for new and spend more money on getting the things they want, especially since it is rolled into their mortgage.

This home is gorgeous, however, the buyers all indicated the home would be more appealing if it had newer paint colors, a simple fix, but something the home owner dd not feel necessary.

 

Foyer 

This 1989 Home has updates and renovations throughout.  New Interior and Exterior Paint, New Light Fixures, New Appliances, New Utility Systems, new Flooring, and Windows.  it went under contract almost immediatly and received close to the asking price.  Value is perceived as move-in ready with today's amenities and features.

The experts agree, as shown in the most recent article from Rismedia- 

What is that buyer looking for? There are renovations that can boost sales price, but others are costlier, lacking in significant returns. Industry experts and the 2019 Cost vs. Value Report by Remodeling Magazine provide some guidance. The Cost vs. Value Report notes that major kitchen remodels within the luxury space cost, on average, $131,510, with the resale value relatively low at $78,524. In essence, these sellers would only recoup about 59.7 percent of these renovation costs upon selling, but that largely depends on the type of kitchen renovation.
 
Hartley actually puts the kitchen at the top of the renovation list, telling agents their clients should focus specifically on cabinets: "…lightening up and getting rid of old dated wood and hardware is a must," she says.
 
For bathrooms, Remodeling Magazine reports that upscale renovations cost $64,743, on average. The resale value is a little higher here than kitchen remodels at $38,952—sellers would recoup about 60.2 percent of their costs.
 
"Bathrooms are also a great upgrade," says Hartley, "but remember not to go too 'trendy.'" She instead recommends that sellers choose more neutral and contemporary options when renovating their bathrooms in order to appeal to a wider range of buyers, instead of limiting the buyer pool by being "too unique."
 
While painting-related renovation statistics are not currently available, Hartley says a fresh paint job, both on the interior and exterior of the home, can have the most potential to increase the sales price of the property.
 
Additionally, the Cost vs. Value Report found return-on-investment statistics for the following upscale renovations:
 
Garage Door Replacement
Cost: $3,611
Resale Value: $3,520
Cost Recouped: 97.5 percent
 
Fiberglass Grand Entrance
Cost: $8,994
Resale Value: $6,469
Cost Recouped: 71.9 percent
 
Master Suite Addition
Cost: $271,470
Resale Value: $136,820
Cost Recouped: 50.4 percent
 
Window Replacement (Vinyl)
Cost: $16,802
Resale Value: $12,223
Cost Recouped: 73.4 percent
 
Window Replacement (Wood)
Cost: $20,526
Resale Value: $14,530
Cost Recouped: 70.8 percent
 

As they say, the proof is in the pudding!  Do the painting, renovating before hitting the market, your home will most likely  sell faster and for more money!

 


 

Posted by

Tanya Spotts                                                                       

Multimillion Dollar Top Producer                                                SUBSCRIBE HERE   
This Spot's For You!  ( http://ThisSpotsForYou.com )

 Long & Foster Realtors
508 E. Market St., Leesburg, VA 20176 

 Cell Phone: 703-618-1218

 Office Tel: 703-777-2900

 Office Fax: 703-777-5627

Email: Tanya.Spotts@longandfoster.com

L&F Office Green Ambassador 

Comments (3)

Anonymous
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Oct 14, 2019 09:49 AM
#1
Anonymous
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Oct 14, 2019 09:49 AM
#2
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

You definitely want to put your home in the best light and renovating those problem areas is a must. The ROI you list bear that out.

Oct 14, 2019 02:22 PM