May 05, 2016 - 11:49
Before selling your home more than likely you will have to do some minor fixes around the home. It can be simple, but sometimes you will have to do MAJOR renovations on your home, especially if it’s at least 20 years old, and that will require much more planning. Many times if the home owner has no experience on managing a renovation project and they do not want to deal with it, they simply try to sell it as-is for a lower price. But if you are looking to sell for the most money and even make a profit at the end, then planning and renovation would be the way to go. So before you start on the project here are a few suggestions that can save you plenty of time and even money.
Although you rarely deal with realtors it is good to seek for their advice on your project. Of course they won’t have contractor knowledge but they will be able to show you what the latest homes in the area look like in the recent updates. Through comparables, they will show you the highest value your home can reach and images of recent updates that could give you ideas for your home. Also, they can tell you what updates would add value to your property and which ones you would be wasting your time and money. Did you know that in some neighborhoods, adding a pool doesn’t increase the value to a property at all and at times can even increase the time your house stays on the market? Doing your homework will go a long way and prevent many headaches on your project.
Once you start to renovate you will need a contractor to tear down walls, install and rewire electric work, fix plumbing and much more. The most important thing is that you hire one that is trustworthy, reliable and reasonable to do the work. Craftsmanship is always important when you are making updates on a home, so be sure to get a few bids and hire the contractor that is realistic with prices and capable of doing a good job. Remember that if you go with the cheapest quote you can find, it is cheap for a reason, and probably not the best person and quality for that job. Sometimes it might even help to get input from interior designers, and can be located at some home improvement stores, they can help you get a better idea of what would look good and the types of materials you will need. Knowing what you want and how you want it will speed the process of selecting which contractors are capable of meeting your standards. Once chosen, be sure to have the deal in writing and the process outlined because a handshake does not confirm a deal.
The final suggestion that many people fail at is to always keep a budget, especially if you are looking to make a profit from all the work at the end. You need to have a well rounded idea of what everything will cost, like the kitchen updates, each room in the home, the bathrooms…etc. And from that, estimate how much you can sell the home for and see what your profit margins are. There will be unexpected surprises, so always add 15% of your total budget money in order to cover those expenses. Much of this work is easier said than done but like I said earlier, do your homework and research on the process and it will go smoother.
Once you have most of the process planned out now it is time to act on it. Major renovations can take a few months so always prepare financially and have patience for it. If you need more information on what your home could sale for as-is or after repairs, or if you need help on looking for a contractor, we can gladly help you on any step of the process. Contact us today at Tran Realty!