A typical renovation is around $30-$50K and will increase the value of your home in that area $100-$150K, possibly more. It will also bring you a quicker sale. Homebuyers who move quickly want a house they can move into right away. Buyers looking for fixer-uppers shop around a lot more before pulling the trigger.
Keller Williams Capital Properties
1918 18th Street NW
Washington, DC 2009
There are a variety of factors that should be considered before deciding which route to go. I would highly recommend you talk to an agent, let them see the house and give you some comps on how to best price the property and if undertaking a renovation is with your time and has a return on the money needed for the renovation. Another factor is how much money are you looking to get out of this property? In the Clositers, a number of the properties have been renovated and updated, but not all of them. Currently there is one property active, listed at $1,475,000 and two that are under contract listed at $1,299,000 and $2,000.000. The one that is current active and the one under contract have been updated.
Please let me know if you would like more information.
If your home is definitely in need of upgrades, spending the money on reno makes sense. If you are considering any major renovations, have your real estate agent provide you with a detailed market analysis and assessment, this will give you a better sense of what the â€œnormâ€ is (number of bathrooms, types of kitchens, average age of homes, etc) and help you understand how your home stacks up against others on the market in your community. If necessary, take the plunge and do any needed upgrades. However, please be careful not too go overboard, and end up being too pricey for your neighborhood.
Instead of making upgrades, you may choose to list your home at a lower price. Sometimes, you might not be able to recoup your remodeling costs when it comes time to sell your home. Furthermore, if youâ€™re worried about your house sitting on the market longer than you want it to, you may be better off forgoing any renovations and concentrate on listing your home at a more competitive price. This doesnâ€™t mean you'll have to UNDERprice your home. You just need to price it well--that is, according to what the current market will bear and according to the current value of your home in its current condition. Again, your real estate agent can help you in this area.
The smart thing for you to do may be a combination of minor remodeling/cosmetic upgrades and lowering your list price. Making smaller upgrades to your houseâ€”to bring it in line with similar houses in your areaâ€”is usually a good idea if thereâ€™s a wide discrepancy between your home and other homes. Also, you should always do minor cosmetic upgrades such as painting, carpet cleaning, and landscaping before putting your house on the market. In terms of your list price, make sure you list your home at a fair and competitive priceâ€”whether or not you make any renovations.
Hope this helped answer your question! Should you need any additional assistance or if you would like me to show you what your home is currently worth by doing a Comparative Market Analysis (CMA), please feel free to contact me.
All the best to you,
Geneene M. Green, REALTORÂ®
Keller Williams Capital Properties
801 D Street, NE
Washington, DC 20002
I see 14 sales in the Cloisters since 2013.
9 of the sales appear to be renovated homes, and the remaining 5 looked to be in more original condition.
Average sale price of the unrenovated homes, $1,255,000 - selling for an average of 2.34% under asking price.
Average Sale price of the renovated homes, $1,425,061 - selling for an average of 3.33% under asking.
Market norm for the community, renovated.
Difference between renovated and unrenovated homes, almost $170K.
The averages listed above for the renovated unit includes one unit that sold for over $2M, and was the ONLY home that sold in that price range, being a unique model, 25% larger than the competition.
When you remove that listing from the equation, the eight renovated units that remain yield an average sale price of $1,331,319.
5 unrenovated home sales - average $1,255,000 2.34% under asking
8 renovated home sales - average $1,331,319 2.81% under asking
The cost of renovations could easily approach the $80,000 price differential.
In any case, the decisions need to be based on the specifics for your community.
Hope this helps.
Thanks for your post. I notice that you're in Lake Forest, IL. That makes renovation a bit more difficult given your distance. If this has been a investment property, it might be worthwhile to sell the property in its current state. You should consult with a realtor to assess the property in its existing state...THEN decide next steps.
If there are minor cosmetic changes, it might prove worthy to make those change. More substantive changes might not be worth it. Depending on when you purchases the place, there might be more equity than you think...and it could be a win-win to sell in it's current state. There are still a number of buyers in the area that can't afford DC's higher price tags, and are looking for a unit that requires a little work.
It looks like there's been a lot of realtor commentary, but if there's anything further I can do to assist, feel free to email me at firstname.lastname@example.org.
Our firm is full-service and offers a variety of design and constructive services in addition to representing buyers and sellers in the DC, VA, and MD area. For more information on the company..visit msqrealty.com.
Best of luck Fourcuts!
There are definitely occasions when your strategy of foregoing renovation, and pricing accordingly make sense.
The best time to renovate is just after you purchase the property. You have the economic value of the renovations and the unquantifiable value of their enjoyment, both.
Renovating now, you have the cost of keeping the unit off the market in addition to the renovation costs.
The renovations that buyers respond to best are personal, tasteful, obvious labors of love.
Renovations done at the end, in a hurry, just to sell, tend to be generic, unimaginative, under-funded, half-baked and half-done jobs. Buyers look at them as something to be torn out and re-done. Why pay for something the buyer might just want to tear out?
Your strategy of marketing in the present condition and pricing realistically may well be correct.
(By renovation, I am talking about a major renovation, of course, not a paint-job, minor repairs, and replacing an out-dated appliance. Giving your property a hair-cut and a shoe-shine always pays off).
Hard to say more without seeing the property.
In the price range of properties in The Cloisters, buyer expectations are high. If you are reluctant to fully renovate the house ...updating the kitchen, bathrooms, knocking down walls...you might consider more minor improvements...painting, replacing worn carpeting,..and staging the property. Happy to give you specific advice.
3201 New Mexico Ave
Washington, DC 20016
Thanks for the reply to my earlier response. By the way, if you don't want to do the reno and prefer to sell quickly, I have an investor who really wants to buy in that neighborhood. They are cash buyers and can close in 30 days or less.
Contact me at 703-961-8663 or email@example.com and put Cloisters in the subject line.
Heymann Realty, LLC
Before I can answer your question,please email me your address to DChomesforsale@gmail.com so I can do a free market value analysis on your home. Then I will be able to tell you if you should sell or rent your townhouse.
Thank you very much. Have a great weekend.