Browse the article How much should you spend on fix-up before a sale?
Home renovations can be expensive -- you may want to save some of that money to put into your new home. See more real estate pictures.
If you're planning to sell your home, chances are you've already done the math and decided it's the right time. You may have even done enough research to sell your house confidently without an agent. Congratulations! But what's the next step?
While thinking in terms of the sale probably has you looking at your home in a new way, it can also magnify your perception of problems you've learned to deal with. You would think that major improvements, like new siding or a kitchen renovation, would help you boost your sale price. But the truth is, most major renovation projects don't make back their investments quickly, if at all: The cost nearly always outweighs the immediate benefit. It might be better to work with what you have.
Or, think of it this way: Part of the fun of acquiring a new home is changing it to suit your family's needs. Let the buyers shoulder these major renovation costs -- and create what they really want -- rather than you paying to remake something they might not like anyway.
If you've decided to sell, it's not your home anymore. It's a product, and that means selling it at its best while saving your money for the really exciting part: renovating your new home and making it the perfect location for the next chapter in your life.
There are plenty of low-cost options for transforming your home from a fixer-upper into a showstopper: not only alternatives to expensive renovations that will increase your home's value, but also hints and tricks the professionals use to help prospective buyers see the real comfort and joy in the house you're handing over to them.
Often, the best thing to do is to make sure that any small repairs and projects are completed before you sell your home.
Put yourself in your buyer's shoes to make sure you have everything covered. A home inspection before you put out the for-sale sign will run you $200 to $300 but could save you a lot if your buyers discover something before you do -- and you can bet their inspector will find it. Heating, air conditioning, water, electricity, plumbing and gas should all be in good condition before you think of putting your house on the market. Don't forget to check for mold in the basement or signs of termite damage.
If you have any home projects you've been meaning to finish, now is the time. The National Association of Realtors suggests that buyers will automatically subtract double the cost of any unfinished projects when they make an offer. Think of these unfinished issues as repair problems with the house, and deal with them accordingly.
Whatever improvements you do make, double-check that they're in line with your neighborhood. Research shows that projects and renovations made too much higher or lower than the neighborhood average won't make back their investments, and they could scare off potential buyers who expected something different from the area. Visit other open houses nearby to get a feel for what's normal in your area.
Remember that you want your buyers to imagine themselves in the house. You want it to be both comfortable enough to seem like home, and just generic enough that it doesn't feel like somebody else's personal space. While high-tech kitchen or bath amenities are a nice touch, they don't make the decision for your buyers: The overall look and feel is what makes your property memorable as a place for buyers to start a new home.