Well...the quick answer to your question is...it depends. Each option has its benefits; however, a compromise between the two may ultimately be your best bet.
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