Let Buyers Fix it up for you – Pros and Cons. Peterborough Real Estate
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Before putting a property on the market, many sellers choose to renovate. Some homeowners do it immediately prior to selling to net them a higher return, while others will complete their renovations while living in the property to suit it more to their personal tastes.
There are at least a few things to consider when deciding whether to renovate and sell or just sell. For some, it might not be the smartest decision to renovate and they might just want to get a property off their hands. Nevertheless, here are some quick pros and cons to weigh.
Renovate and Sell – Pros
So many buyers want a ‘turnkey home’. This is where all a buyer has to do is move their furniture in and it’s good to go. To this group of buyers, it would be important for your home design to be updated and to have any functional issues (i.e. electrical, plumbing, infrastructure) to be addressed. From a seller’s perspective, the most obvious advantage to completing a renovation is that it should net them a higher return on selling and ultimately, maximize the amount of buyers interested.
Renovate and Sell – Cons
The upfront investment in renovations is understandably high. Though not all sellers have the financial support to complete a renovation, it may be worth it to look into whether a loan would suffice. To this point, let’s say your home has not been touched with any significant construction or renovation in a few decades, this might in fact be a bad thing. As it pertains to larger renovations, they can oftentimes reveal numerous issues that essentially turn a property into a bottomless pit of financial woes.
Sell with no Renovation – Pros
When selling with no renovations, you might be able to get a quick sale which is great news if you’re looking to offload a property as quick as possible. Though you can expect bids to be lower, if the market conditions are right and you’re in the right neighborhood, you might not need sufficient renovations to get back a decent return. Also, many prospective home buyers prefer to renovate themselves. By putting a home on the market without renovations, it could potentially help broaden the range of buyers the property appeals to.
Sell with no Renovation – Cons
For specific target audiences seeking a turnkey home – as many millennials and young families are – they want a home with renovations. They’re expecting it and they won’t buy otherwise. That’s fine for some, as long as you’re content selling for a little less than you might with updates included. In some cities, you might unintentionally cut down on your list of potential buyers.
There are advantages to both approaches. Analyze the local marketplace, consider what you can afford, and identify what you’re looking to gain from selling. For many Canadians, financial gains in selling are worth the challenges of renovations. This isn’t always such an easy decision though. When one begins to open up the walls of a property to renovate, it’s difficult to say what they will find. All in all, we hope these pros and cons can provide some idea as to what’s best for your real estate selling experience.
Frank Rosso & Amanda MaCaskie Remax Hallmark Real Estate Peterborough 705 933-9688
