Should You Renovate Before You Sell Your House?

Between the influence of mainstream outlets like HGTV and the prevalence of home improvement projects on social media, you might wonder if your home needs significant improvements before you sell it. 

Early on in your selling process, questions abound. Is your home ready to list? If not, what spaces might your buyers want to be remodeled? Can you do it yourself, or will you contract the work? How should you time the renovations so they fit seamlessly into your home-selling process? And how does the luxury real estate market affect all this?

There is no one-size-fits-all solution to these issues. But with a trusted agent like Lesli Ray on your side, you have an ally who will answer each question honestly and contextualize every aspect of your sale. In other words, she will tell you the best way to handle your property pre-sale. Read on to learn what renovations buyers want in Austin luxury homes.

The condition of your home will be under scrutiny if and when you decide to sell it. At a minimum, your agent will recommend cosmetic improvements to enhance your home’s curb appeal (think landscaping, fresh paint, a new front door, etc.). You want your home to look, feel, and smell its best for prospective buyers.

While you’re at it, investigate the systems that power your home behind the scenes. A pragmatic agent like Lesli Ray will recommend professionals who can assess the functionality of your house’s electrical and plumbing systems, HVAC, and insulation. Even if you don’t notice such renovations, they improve your bottom line, especially if your home is old or you’ve lived there awhile. When your eventual buyer conducts an inspection, they will be confident to discover no red flags, ultimately leading to a better offer on your Austin real estate.

As a rule of thumb, the more modern your home, the more quickly you can assess and perfect its condition. The Austin housing market includes plenty of new construction homes, and if yours falls into that category, you and your agent can focus on marketing it. If you’re selling an older house, your buyers might prefer sweeping renovations, on the one hand, or handle renovations themselves. You need your agent to calculate precisely which renovations (like new flooring or bathroom fixtures) will increase your Return On Investment (ROI).

To determine what spaces to remodel, you need to know your prospective buyers and what they want. In terms of desired renovations, the lowest tier of buyers are those looking to flip Austin real estate. These buyers are more likely to handle renovations themselves.

The next tier of recommended upgrades can be accomplished sooner and for a relatively lower cost. They include atmospheric changes like new paint and lighting (in other words, renovations that make your Austin property feel like a home). As you might expect, these renovations are geared mainly toward families or couples planning to have kids.

Certain renovations occupy a middling tier between family-oriented and luxury-oriented. In most cases, sellers should avoid structural remodels because the cost is not worth the gain. The problem with more significant renovations (like adding a bathroom or knocking down walls) is that there is little chance you will recoup the money you’ve put into the renovation. Instead, your choice of new flooring, for example, might alienate buyers who want different flooring altogether.

The highest tier of renovations is aimed at luxury buyers. The list of possible high-end amenities is virtually endless, so your goal should be to identify which features best complement your house. Consider working with Lesli, a local agent experienced in the market for Austin luxury homes. 

Depending on your circumstances, you might need to sell your home ASAP. We often work with sellers with inflexible relocation timelines (like professionals starting new jobs or families with kids starting school). Another scenario where you might want to sell fast is if you’re in an especially hot seller’s market. In any case, if an immediate sale is a top priority, you want an agent who can streamline the process for renovations. With your approval, Lesli can find contractors, get quotes, and commission work so your home is ready on time.

Conversely, if you plan to keep your house indefinitely, you might embark on a set of renovations with the long-term in mind. Some upgrades take a day or two to complete, and others span months a luxury for you if time is not a constraint. If cost is a higher priority than time, consider our advice in the following section.

As you decide on renovations, weigh their expected value against your budget. To find one specific renovation’s expected value, ask your agent to calculate its ROI. In the big picture, you also want an agent who will evaluate your home compared to similar Austin real estate (the industry term is “comparative market analysis”). Your total renovation cost should not surpass your house's estimated selling power.

In practical terms, don’t overspend. Your budget is your frame of reference for renovations. According to the National Association of REALTORS®, kitchen upgrades are the most popular renovations among homeowners, most of whom want to upgrade surfaces or add features. However, the average kitchen remodel costs about $45,000 and recovered just $30,000 a recovery rate of 67%. If your luxury home sale recoups more than $15,000, that’s great! But not everyone’s budget has $15,000 leeway for kitchen renovation.

Another way to save money is through do-it-yourself (DIY) projects. You can take on some of the work if you’re skilled in the labor required for some of your renovations. Depending on the market, your agent may recommend you limit DIY projects. 

Your local real estate market is the X-factor in your home sale: it affects your finances, timing, and the slate of renovations.

If you’re listing in a buyer’s market, you can expect home sales to take more time, which could leave an extra week or two for renovations. In a seller’s market, buyers act more quickly, and there is more competition for your house; to place the winning bid on your home, your buyer is unlikely to insist on specific renovations.

Austin houses, especially luxury homes, are highly desirable, and that demand makes them resistant to market trends. The stakes are higher, so you must work with an agent you trust. The best agents in Austin know the trends in your neighborhood down to the last decimal point.

One of the most common questions buyers ask is whether they should renovate their homes before listing them. Properly gauging market conditions is vital in any sale, especially when considering if you should renovate to sell. You and Lesli will take the necessary steps to renovate your home and sell it for maximum profit. Contact Lesli Ray today to discuss the next steps you should take in your home selling process.