Are you thinking of remodeling your home before putting it up for sale? If so, you’re probably wondering what difference it makes or if it changes anything at all.
Some people think flipping a home means they get a higher proper resale value. But usually, remodeled homes for sale either go up or down. It depends on what renovations you make. If that’s the case, what should you keep in mind?
Here’s what you need to know about how remodeling affects your home.
The Value of Home Renovations
The renovation affects home sale price by allowing you to increase your return on investment. The key to maximizing it is by planning the right projects in your and your buyer’s favor. Home renovations are also a way to keep your home in line with property trends and stay updated with maintenance.
Choosing the Right Renovations
Before putting your property up for sale, you might want to consider home renovations that add value to its price. The following are a few points you can consider:
Consider Square Footage
Physical expansion is a great way to improve property sale value. It gives you more room and adds to the potential functions of the home. Note that this includes any kind of addition, from new rooms to extra space.
Focus on Functional Spaces
The kitchen and bathroom are two of the most functional rooms in a home. A great way to enhance that is by making upgrades that affect their usability.
For example, adding another shower, updating plumbing, or installing additional storage are a few ways to improve it. Moreover, if you manage to keep the appearance nice, it keeps your property’s sale price high!
Prioritize Property Maintenance
With property maintenance, it’s essential to look into the home’s systems, such as heating, cooling, and ventilation. Broken HVAC means lower efficiency, which becomes unattractive to home buyers.
It costs a lot to replace or repair an HVAC, so you can also try selling it as is. In that case, you should price it accordingly and ensure your prospects are aware of the damage.
Make Relevant Updates
Installing new technology is an excellent way to upgrade your home and add to its value. In the real estate market, smart homes tend to cost the most, among other property options. At the same time, lots of people look forward to these types of modern homes.
Financing Options for Home Renovation
If you can’t afford to make renovations before selling a home, consider different financing options to help you. Here are a few of them:
Using Home Equity
Home equity allows you to borrow a specific percentage of your home’s value. You can use up to 85% of your property’s price. Note that these still count as loans so you have to repay them.
Cash-Out Refinance
Cash-out refinancing lets you replace your existing mortgage with a bigger one. Here, what you receive depends on the difference between your mortgage balance and loan in cash.
Personal Loans
One of the simplest ways to fund flipping a home includes requesting a personal loan. But note that they are usually stricter when it comes to repayments since they can affect your credit score.
Learn About How Renovations Affect Remodeled Homes for Sale
Many people aim to put remodeled homes for sale when it’s at its best condition to get the most profit. There are several ways to make home renovations, but a few tips include focusing on space and function.
You can check out our blog to learn more about it!
