Many homeowners often feel they need to get their houses ready to put on the market by making updates to make them more appealing. But, with so many buyers currently competing for available properties, renovations may not be as vital as they might have been in other times.
Here are two thoughts to consider if you’re currently sitting on the sidelines, because of an overly aggressive to-do list.
1. There aren’t enough homes for sale right now.
A normal market has a 6-month supply of houses for sale, but today’s housing inventory sits far below that benchmark. According to the National Association of Realtors (NAR), there’s only a 1.9-month supply of homes available today. As a result, buyer competition is high and homes can be on the market for about 21 days or fewer during which time many receive multiple offers from hopeful buyers.
It’s not unusual on Cape Cod right now for a home to be listed in MLS mid-week with showings and/or open houses scheduled through the weekend. By Monday, an offer is accepted, often for more than the asking price.
So, in a competitive market that’s moving so quickly, it makes sense to sell your house when buyers are scooping homes up as fast as they’re being listed. Spending costly time and money on renovations before you sell might mean you’ll miss your key window of opportunity. While certain repairs on your house may be important, your best move right now is to consult with real estate professionals — like Mari Sennott and Associates — to determine which improvements are truly necessary, and which ones aren’t likely to be deal-breakers.
It may be wise, for example, to let future homeowners remodel the bathroom or the kitchen to make design decisions that are best for their specific taste and lifestyle.
As a seller, your dollars and time might be better spent working on small cosmetic updates — like refreshing some paint and power washing the exterior — instead of over-investing in your home with upgrades that the buyers may change anyway.
Today, many buyers are more willing to take on home improvement projects in order to get the home they’re after, even if it means putting in a little extra work.
2. Focus on getting a good return on your investment.
When planning any bigger projects to tackle, you need to consider the potential return on your investment and if those projects are worth the cost. Some homes do need a kitchen or bathroom renovation, roof repairs, or other major work, but definitely not all. You can also price your home to reflect the fact that work is needed.
Ideally, homeowners getting ready to move should try to avoid over-investing in big renovations, if they won’t make that money back when they sell their house. You may find out that putting your house on the market “as-is” will help you sell quickly, and it may result in the best return on your investment.
Since we’re in a strong sellers’ market, you have the leverage to market your house on your terms. Let’s connect to determine if renovating is really the best way to spend your time and money before you sell. Helping out clients make the best decisions for their individual situations has been out full time job for 21 years. Please let us know how we can help you. Talk soon…
Don’t wish for it; go for it!
Mari and Hank