With inflation running at a 40-year high and hitting construction costs, you’ve got to be on point if you’re considering a remodeling project to maximize the value of your home before sale.
You must focus all your efforts on projects that will deliver a return on investment and not risk time or cost blow-outs that could affect your own moving schedule.
Despite the recent Federal Reserve rate hike, the property market still is averaging strong annual value growth, so it makes sense to invest in upgrades to deliver the best possible result.
There are several steps that can ensure your project will be a success, helping you to avoid spending money on features few buyers value.
The first step is to appoint an agent and discuss with them how you might be able to enhance your home to achieve a great price. As a local real estate professional, I work with buyers and sellers every day, and I know the features that command a premium.
Time is another factor. How long can you wait before you need to move? For example, painting the interior of your home will probably take a week. But you can’t complete a bathroom remodel in any less than eight weeks, and that’s being optimistic given supply chain issues and labor shortages.
You may also like to think about insurance to guard against any problems with your builder or losses incurred due to supply chain difficulties. Penalties in a contract for missing completion deadlines is an option homeowners consider to help get the job done on time.
These few quick tips will help you select the right projects for your budget and schedule.
Know your numbers
It’s essential we look at the price you are likely to achieve for your property before you do any work and then estimate the potential selling price with the planned improvements. We can do this by using an independent valuer or utilizing industry research on our neighborhood. You also need to understand the impact of higher interest rates if you’re using additional financing.
Focus on value
A good agent will guide you on whether your plans will deliver a payback. Most neighborhoods have an unspoken value ceiling, above which buyers are not prepared to spend to live in the area. Putting this lens on your project avoids over-capitalizing.
Time is critical
Folks often forget the time upgrades take to complete. Consider your own needs. If you need to move to start a new job, you shouldn’t commission work that will blow-out your deadline. That’s too much stress.
Set your budget
Make a budget and stick to it. As you are selling this property, there’s no value in over-spending.
It’s not personal
You won’t be the one who’ll enjoy the fancy faucets. So, budget for mid-range fixtures as these are sufficient for most remodels unless you’re in the luxury market.