The current trend for luxury homebuyers is to purchase a home that does not require renovations. Today’s Buyers of the high-end real estate are looking for turnkey, ready to move-in-to properties with all of the amenities, whistle and bells included with no extra work. I am often seeing homes being fully furnished.
And it looks like that’s not changing any time soon. According to a forecast from Persistence Market Research, the move-in ready luxury home market is expected to hit $920 billion by the end of 2025. That’s up from $550 billion just two years ago.
As a local Park City Utah agent serving these ever-evolving high-end clients I often hear Seller of Luxury homes ask the question: should I remodel before listing my properties to sell? Would it make my homes more marketable? More valuable? More appealing?
Here are some recommendations that you need to consider before planning to take on renovations.
HERE ARE SOME ADVANTAGES OF RENOVATING BEFORE LISTING YOUR HOME FOR SALE:
It typically enhances a faster sales time and less inconveniences with showings.
It provides an environment for better listing photos.
It can improve the appeal and marketability of your property.
It justifies you to maximize your asking price.
It gives you more leverage to negotiate with.
If you are looking to move fast (particularly with a job relocation and on tight timelines), this can create an issue. Generally, many Sellers are willing to sit and wait for their home to sell!
To top all of this off, pre-listing renovations often increase the value of the property and justify a higher asking price. In today’s market I am seeing more buyers simply prefer a move-in ready homes, and you your will have that property separating you from the competition especially in this Buyers’ Market where you need to separate your home from the rest on the market. You will be able to attract higher offers and more buyer interest in your newly renovated home.
DISADVANTAGES OF RENOVATING BEFORE LISTING:
It will delay the listing your home and the marketing of your property.
Many times, the renovations are a nuisance to you the homeowner.
It will require significant investment of up-front cash.
It is often times difficult to choose the right projects, contractors, and designers.
On the downside, renovations can be time-consuming and tedious. Though renovations might speed up a sale once they’re complete, it takes time to get there. If there are several contractors to hire, endless materials needed and multiple projects on the agenda, the renovations could actually delay the marketing of the property and, eventually, its sale and transfer, too.
Finally, renovating can be a hassle. If the homeowner is still living on the property, they might tire of the noise, foot traffic, and other nuisances that come with a remodel. The renovations could disrupt sleep, interrupt work schedules, or even pose a safety hazard for those living in the home. For these reasons, many sellers may shy away from this added work.
TO REMODEL OR NOT TO REMODEL
Should you remodel before listing your home for sale? There’s no one answer which is best for all. There is a good chance it will make your property more. Still, renovations aren’t without their drawbacks. You need to be well aware of the nuisances that come with home remodeling and be prepared for the time and expense it may take to complete the renovations properly.
You should need to be aware that not all remodeling projects are created equal. I recommend that you might want to check out a great renovation resources like Remodeling Cost-vs-Value as well as your own personal knowledge of luxury real estate trends and best practices. You will need to make sure you select improvements that will improve not only the aesthetics and marketability of your home.