Should I Remodel or Sell ˜As Is"
By Jeff Hammerberg
This question is a common headache for many homeowners when placing their home on the market. On one hand, a remodel could create a diamond in the rough, and possibly even encourage a faster sale. On another, selling as-is in a competitive market could save months of listing time if priced right.
When You Should Remodel
Analyzing your competition can be a great way to gain insight into what buyers are looking for in your market. It's easy to assume a feature or amenity should immediately increase the value of your home. In some cases it will, but many times a remodel will only bring your home to the market readiness of other similar homes in your neighborhood.
You should consider remodeling a room in your home if any of the following applies:
1) When analyzing sold history and currently active homes on the market, you find that this particular remodel is commonly found.
2) The room is in dire need of attention and a simple clean up won't suffice to get it market-ready.
3) When analyzing sold history, a predominant higher price is offered for homes with this particular remodel.
You're likely to never recoup the entire cost of a remodel, but getting your home up to par may be necessary to sell your home in a reasonable amount of time.
When You Should Sell As-Is
If your home can be considered a "benchmark" home, or a home that is already loaded with amenities not commonly found in your market, you should consider selling as-is. While a pricey remodel will certainly make your home shine during an open house, it usually costs more than it's worth.
You should consider selling your home as-is if your home meets any of the following criteria:
1) The average price per square foot in your market is deteriorating (down market).
2) Your home can be considered a "benchmark" home, or a home that has more features and amenities than the competition.
3) Your home is already on par with other active properties in the area.
The Rule of Thumb
First, ensure that your home meets the standard set by the competition currently for sale in your market. If your home is not up to par, you should consider remodeling.
If your home shares the same features and amenities as its competition, then you should consider selling as-is to avoid leaving any money on the table. A remodel is always a nice selling feature, but many times it does not make financial sense and is simply a waste of time.
Take the time to get with your real estate agent to analyze your competition, and base your decision on what buyers are demanding in your particular real estate market.
Author Jeff Hammerberg is the Founding CEO of www.GayRealEstate.com.
Reprinted with permission from RISMedia. ©2013. All rights reserved.