Selling an outdated or dysfunctional home can be difficult if not impossible. However, many homeowners hesitate to put more money into a home that no longer works for them. There is a distinct line between spending enough money to get the home sold and putting too much into it that you won’t get back. The key is to create a renovation budget that takes care of the problems in the least expensive way.
Know What Needs Renovated
The first step is to know what issues need to be taken care of. One way to find out where to put your focus is by having a home inspection and an appraisal done before the home is listed. Look at both reports and notice the big-ticket items. When homeowners work with a real estate agent, they have the advantage of the person’s experience to know what buyers will look past and what will need to be fixed.
Outdated electrical and plumbing and foundation and structural issues are big warning signs to most buyers and the most expensive to repair. However, cosmetic issues can also deter many would-be buyers because of the cost involved in updating. For example, the average cost of a kitchen remodel varies from just a few thousand on a minor renovation to almost $100,000 for a high-end space. The majority of that cost is materials.
Because kitchens and bathrooms are big selling points for a home, these two areas often need the most work if they are outdated. However, you also don’t want to overlook the landscaping and outdoor space. The living areas and bedrooms are relatively inexpensive to update.
How to Designate the Budget
Some homeowners will decide to put all of their money into one area, such as the kitchen. While updating this space is high priority, when you stop with one area, you make the rest of the house look worse. Instead, it makes the most sense to divide the budget to hit all of the major points.
Put most of your budget towards the kitchen, bathrooms and landscaping. Save about 10 to 15 percent to make inexpensive updates to the rest of the house. Paint is relatively cheap and can do wonders to the living room and bedrooms. If you need flooring, you can find inexpensive options that won’t cut into the budget too much. For example, replace an old carpet with vinyl or laminate. Modern laminate can be made to look like hardwood at a fraction of the cost.
Learn How to Cut Costs
You don’t want to be cheap on your renovation just because you’re selling since buyers can spot low-quality materials and work. However, you can learn how to reduce your costs by shopping for clearance products or going to outlet centers. Last season’s light fixture is still going to look modern but at a fraction of the price of the latest designs.
If homeowners are willing to do some of the work, they can cut down on labor costs. Even demoing a room can help out a tight budget before calling in the professionals. Another way to conserve your money is by talking to a contractor before you start the work. Let them know your budget and your goals, and they can create a proposal that provides the basics within your price. They know how and where to get the less expensive materials and where to cut costs and in which areas you should spend more.
If you want to get a homeowner to renovate their home for sale within a budget, encourage them to contact a contractor or remodeling company in the early stages. Indiana Residential has experienced professionals who can work within any budget and provide advice on how to renovate a house to help it sell faster.
