In our latest My Block: Featuring Renos with Ryan, we recapped a unique renovation project — Ryan’s own in-laws. The project was completed very quickly, taking a home that was in pretty bad shape and creating an amazing home out of it. In the process, the team demonstrated the benefits of a good renovation, including a financial win by adding about $42 per square foot in value!
Whether you are buying a home or selling your home, the decision to renovate is a significant one. Any home can be renovated, whether it’s in great condition or it’s in shambles. These renovations help create opportunities and present new options for your home and your life.
When to Remodel Your Home for Sale
In deciding when to remodel your home for sale, you want to keep your end goal in mind: what do you want to get from the home? Think about how we can get you there. That might require some renovation work. Renovations really help tidy up and make those listing photos look much better.
Here are some other things to consider when it comes to renovating your home for sale:
- Get an honest assessment from a pro like Ryan, on what the costs will be to renovate against the potential increase in value. We measure the value in price-per-square foot, and renovations can often give a good, healthy boost to that value. Never invest more than you can recoup!
- Fix what needs to be fixed, including blemishes, broken glass or tiles, patchwork, etc.
- Repair structural issues, like the roof, foundation, or any code violations.
- Consider updating carpets, window dressings, and other items that may have gone out of style.
- Consider form over function. Making the property easier on the eyes, when it comes to selling, can pay higher dividends than replacing or upgrading features that work just fine as is. New paint, flooring, cabinets, etc. may have higher returns.
Buying a Fixer Upper: Renovating as a Buyer
In the neighborhoods we represent, we see a lot of the younger generation, people in their 30s and 40s, moving in…and renovating. These are young parents moving back into the neighborhood. These neighborhoods are great areas with history, but there are no spec homes, it’s all custom homes. Areas like this are perfect for getting into that fixer-upper and making it your dream home. In fact, many buyers prefer these to a home that has already had a full renovation just for that reason: they can truly make it theirs.
The key is to make sure everything is structurally sound. You don’t want any foundation issues. If there’s a pool, you want to make sure it’s functioning properly with no structural issues itself. Your inspector will go through these areas, but pay special attention to anything s/he finds with the roof, windows, AC unit, etc. These ‘unsexy’ areas will make a huge difference to your own renovations and home value.
When you find a home that needs work, keep these things in mind:
- Does it make financial sense, considering costs and before/after value?
- Make sure you can line up the funds to cover the renovation, plus some — yes, you’ll need a money cushion for unforeseen costs.
- Are most of the fixes major construction projects or more cosmetic updates?
This big decision can be deceptive. We’ve all seen the TV shows where an amazing home is created in thirty minutes. Well, that’s just a snippet and can easily lead people to get in over their heads. We often recommend starting small, with a manageable project, like a single room, and expand from there. Don’t start with whole home right out of the gates. If that’s not an option, then get a pro like Ryan (reach out to him for guidance right now).
Getting the Right Advice on Renovations
At Par 3 Realty, we are a one-stop shop. We will work with you all the way from financing to purchase to the renovations. Whether you’re looking to maximize your investment or turn a new home into a dream home, our experts will be there with you every step of the way. We can even find good renters for our investment property!
The point of all that is not to pat ourselves on the back. The point is that when it comes to making the decision to buy a home and renovate, or to renovate a home before you sell it, is a big one, and you need an expert to help you with that.
We educate all of our clients, especially when it comes to price and renovations. Both buyers and sellers want to get the best price per square foot, and renovations and home structure play a big role in that number. The right renovation can get you where you want to be, which is where we began — with the end in mind.