If you home in a declining Market where the home values are dropping, then the quick answer might be a qualified YES that you should indeed remodel your house before selling it. But not all remodeling projects have the same return on investment (ROI) so you need to choose your projects very carefully. Unlike Small Kitchen and Bath remodel that have more than 100% return on investment, the rest of the improvements could be riskier.
For instance, adding new roof to a small Single Family Home could easily cost $6-$8,000, but the ROI might be less than 100% on that investment. Below are some are some good questions to consider before you take on Small Kitchen and Bathroom remodel.
But if your home is not move-in ready in contrast to competing properties, then that it might be a good time to consider a small kitchen or bathroom remodel as shown below. The questions to consider are:
1) Nearby Comps: If majority of the competing properties that are on the market are mostly new or remodeled homes; then you should seriously considering remodeling your home before selling it since you will not get top dollars for you home. Without remodeling your home would seem like a fixer upper which will only attract cash investors who typically don’t over pay.
2) Kitchen And Bathroom: Are these rooms dated and old?! Are the counter-tops, appliances more than 10 years old!? Kitchens sell homes so if you kitchen’s size, appearance and appliances are going to become an inhibitor to selling your home, it’s wise to remodel these rooms.
3) Flooring: Do you have any Laminate or Flush Carpet flooring?
5) Landscaping: Does the home have any curb appeal? What will the 1st impression of the New buyers will be when they drive by?
If the answer to these questions is a resounding Yes, then you might want to consult a Home Remodeling Contractor to get estimates on repairs. However, you need to set tight criteria on your ROI and the opportunity costs since any major remodeling project will add to your marketing cost and will tie up your cash.
The hardest part would to estimate the After-Repair-Value of your home. And that’s where you will need a Realtor which specialized in selling remodeled homes. It never hurts to start with a Free eBook on your Home Value before you accept an offer.