Are you considering selling or renovating your home? You obviously want to sell your home for more than what you paid. Certain types of renovation will never raise the value of your home enough for you to recoup the cost right away. The average price of a new home is about $295,300 in the United States. The average price of a fixer upper is about $185,000 to $200,000, a difference of about $100,000. When you are thinking about placing your home on the market and renovating, you need to think about things like:
- Renovation budget
- Your listing price intent
- How much capital gains tax you might be liable for on the home.
In many situations, it may be quicker to work with a partner like Houston Capital Home Buyers to sell your home for you without the hassle of dealing with the renovation.
Things To Consider When Deciding To Renovate
Some of the various types of home improvements you may make during a renovation will be more costly than others. For example, upgrading your bathrooms or painting are less costly. Landscaping changes, energy efficiency upgrades, adding space, and other improvements are going to add a lot of value to your home over time, but cost more. Investments like solar panels are upgrades that you make to your home to save money over a longer period of time and selling your home after those upgrades will not make you enough money to recoup the cost.
Also, certain types of renovations have a longer timeline that might prevent you from putting your home on the market. Depending upon the type of upgrade, you could be looking at a timeline of weeks and months. A basement remodel could take up to 9 weeks. Kitchen remodels could take up to 4 to 6 weeks. In other words, if you are looking to get rid of your home fast, you might be better off selling your home to a partner like Houston Capital Home Buyers who will buy your house without you having to go through the extensive process of renovation.
How Much Will You Get For Selling Your Home Without Renovating?
This is a very complicated question to answer. According to recent trends in the real estate market, if you have a cheaper existing home, you may be able to sell it more for what you had in the past. There is a low supply of cheaper existing homes right now, which means that the average price might be higher if you sell it. This trend indicates that you might be better off selling your home without renovation and you’ll likely be able to sell it with a partner like Houston Capital Home Buyers quickly.
You Actually Don’t Recoup That Much of the Cost if You Renovate Your Home Before Taking It To Market
Did you know that if you upgrade your kitchen you might spend, on average, $23,000, but only recoup about 77% of the cost if you sell your home? Refinishing your basement is the most expensive project, costing upwards of $30,000, but you’ll only recoup about 70% of the cost. Home renovations, depending upon the market in your area, might not increase your sale value enough to justify the expense of renovations.
Sell Your House Fast In Houston Without Renovating
If you are looking to sell your home quickly, give Houston Capital Home Buyers a call. We can get you a quote in as soon as 24 hours and possibly sell your home within 7 days. We also take care of all renovations, if they are needed, after we buy the home.