Are Renovations REALLY Necessary Before I Sell My Home?
Renovations are often the first thing that comes to mind when homeowners think about “curb appeal.” But with even a small renovation — we’re talking new kitchen cabinets and a fresh coat of paint — easily setting you back an average of $25,000 to $45,000, it begs the question: Is remodeling worth it for homeowners who want to sell their home for maximum profit? The answer may surprise you.
3 Surprising Reasons You Might Not Need to Renovate Your Home Before Selling It
At Path & Post, we help people like you navigate the complex real estate markets ranging from Metro Atlanta to the North Georgia Mountains. We aren’t average agents. We’re real estate strategists. Our team of experts has unearthed some unexpected insights into Georgia’s hyper-competitive market that will make you rethink your approach before putting your home on the market.
1. It Will Cost More Than You’ll Make Back
Homeowners are often told that doing a remodel will help raise the value of their homes. And while that may be true, the actual financial breakdowns present a much different picture. In fact, despite the increased home value, homeowners often sink more into their remodel than they recoup when they sell their home.
Bathroom remodels are one of the most popular routes that homeowners take. Researchers recently looked at the average cost of a bathroom in Atlanta and the rest of the South Atlantic region.
They found that the average bathroom remodeling project cost an Atlanta homeowner $19,680. When they sold their home, that remodel added $13,130 to the resale value.
That’s right: Remodeling a bathroom ended up costing the average homeowner a net loss of $6,550 (to say nothing of the headaches of renovating). That means homeowners only recouped 66.7% of their renovation costs!
Other startling renovation statistics for the Atlanta housing market in 2020:
- Kitchen remodels only recouped 58.7% of costs
- Adding a deck only recouped 66.6% of costs
- Adding a new bathroom only recouped 53.9% of costs
From a financial perspective, most remodeling projects clearly aren’t the money-making opportunity that homeowners think it is! But what about making your home stand out in the market? After all, you need your home to sell — and sell fast.
2. Renovations Don’t Make Your Home Sell Any Faster
This fall is one of the best times to list your home. Our Path & Post team has seen surging numbers, numerous offers per listing, and a lot of interest in homes within hours of them hitting the market. In fact, right now every market in Georgia is red-hot.
According to the National Association of Realtors, we’re seeing home sales growing not only month-over-month but also year-over-year this fall! Right now, the average time it takes to sell a home in Georgia is just over a month to get an offer plus another few weeks to close. That’s an estimated 7.5% faster than the national American average!
In such a crowded market, renovations might not be as important to make your house stand out in the crowd — right now, every home is in high demand!
3. The Opportunity Costs of a Remodel
Not only are you facing a steep financial hit when undertaking a remodel, but you also have to consider the opportunity costs.
For example, how much stress, hands-on time, and emotional energy are you willing to put into remodeling your home? If you have a family, how willing are you to navigate drywall dust, inoperable bathrooms, or an off-access kitchen while also worrying that you might not recoup your financial investment?
And while the market is hot right now, no one can predict what tomorrow brings. Have you considered the risks of putting off your listing in order to complete your remodel and potentially missing out on Georgia’s current real estate market surge?
What’s Your Next Path Forward?
These are understandably big questions with many complex variables. Contact the team at Path & Post today for a personal consultation with one of our expert, friendly real estate strategists. We can help you break down the unique numbers and statistics in your neighborhood and work with you to figure out if a renovation makes sense before selling your home.