Should I Upgrade My Home Before Selling?

What upgrades would increase my home's value the most?

 

This is a hot topic right now, especially with everyone watching the home flipping shows on reality TV. If you're thinking of spending, potentially thousands of dollars improving your home prior to selling, then you should probably know if those upgrades would actually increase the value of your home, right?

The biggest mistake sellers make when upgrading their home prior to selling is NOT consulting with a real estate professional who is experienced in "After Repair Value" (ARV) valuations. The answer to whether upgrading should be done or not, and which upgrades to invest in depends on a few factors:

  • ARV - After Repair Value
  • "As-Is" Value
  • Market Conditions
  • Perceived Value of the Improvements in the Eyes of the Buyer
  • Opportunity Cost - Losing Selling or Buying Opportunities in the Market
  • Cost of the Upgrades
  • Length of Time for the Remodel

For traditional sellers, in "Hot Markets", many times it doesn't make sense to do any upgrades. In a seller's market homes already sell at a premium which pushes into that ARV value, so upgrading just may not be worth the time, risk, and headache. Just a basic cleaning, home prep, staging, proper marketing, and negotiation is enough to avoid upgrading.

Typically upgrading makes more sense in a "Buyer's Market" because there is more competition and upgrades will help the home actually sell, and at market price. Funny enough, in these markets the perception of sellers is that they are already losing money due to the market conditions so they don't want to invest more into the house.

If you're curious about your home's After Repair Value, submit the Seller Information Request Form below and a real estate professional will contact you to discuss your situation.

 

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