Should You Renovate Your House or Sell It As Is?

Selling a property can be a huge undertaking. Though there are buyers out there looking for properties, the market is oversaturated, so it can be difficult to find a prime buyer for your property. 

Of course, a number of factors may influence the sale of your property, such as picking the best time to sell a house or the condition of the housing market, but a primary factor can be the condition of your property. 

There is much debate about whether or not a property should be renovated before being put up for sale. At Lyons Estates, we have worked with a wide range of property owners who have encountered the same problem. 

Looking for insights on how to tackle this situation? Continue reading our guide to discover the ideal solution tailored for you.

Factors to Consider When Considering Home Improvements

You might be set on renovating your property, but before you rush into it, there are some factors you should consider before committing to a major renovation. 

Remember, renovations can be costly, so consider the following factors that may influence your decisions. 

Property Condition

The current condition of your property is something that you need to consider before deciding whether or not to renovate it. 

If your property is in complete disrepair, and you want to sell it for the same price or more than you paid, you may need to consider some renovations to secure a sale.

If your property is generally okay without any significant faults or problems that may be a risk, you might not need to invest any money in renovations. If you are really not sure, you could employ a surveyor to give you an accurate estimate of any necessary repairs, but this can be costly. 

Your Budget

Your budget can play a huge part in determining whether or not you should renovate. There are many reasons someone may choose to sell, such as upgrading or moving, but renovation might not be the best idea if you are selling because you require additional funds. 

House renovation costs can be higher than you might imagine, so if you are already operating on a low budget and need a cash injection, creating an even bigger financial burden might create more challenges.

Target Market

When selling a property, it is important to pinpoint your target audience. Are you looking to sell to house flippers? Are you looking to sell a ready-to-move-in property to a family? Once you have a good understanding of your target audience, you can then move forward with your decision. 

For example, if you do want to sell to flippers, there’s no point in spending money on renovations. But if you want to sell your property as ready to move in, you have to ensure it’s in the right condition, or buyers may haggle a lower price or ignore the property entirely.

The Strength of the Market

The world of real estate is constantly changing. One day, it might be a prime time to sell, and then the next week, you are scraping the barrel to try and find a buyer.

If you think you will struggle to sell your property based on its current condition and the market’s state, you might want to renovate it to make it more appealing to potential buyers.

Ironically, a poor market may also have some benefits if you are looking to flip your house quickly. If the economic market is not doing well, more people may be inclined to buy lower-quality homes to secure a bargain and then later improve the property. 

If you want to know more about the current state of the real estate market, we recommend working with an estate agent who can advise you on the best practices and play a big role in selling your home. 

Return on Investment

When it comes to selling anything, something significant to consider is the return on investment through the sale. You want to make sure that you are getting something back for what you have paid.

It is important to understand just how much money you can make if you sell the house and then factor in any potential renovation costs, as doing so can help you determine whether or not renovations are worth it mathematically.

Advantages of Renovating Before a Sale

If you are still undecided about whether or not you should renovate before selling your property, it is important to understand the benefits and drawbacks of doing so. Some of the advantages of renovating a property before a sale include;

Buyer Appeal

One of the biggest advantages of renovating your property is increasing buyer appeal. Before we consider a property’s amenities and features, we tend to buy with our eyes first. This means that people are more likely to enquire about properties that they find visually appealing.

By renovating your property, you can make it more aesthetically pleasing, potentially attracting more buyers 

Adding Value to Property

If you want to sell your property at a premium price, you have to make sure that it offers value. Major renovations such as kitchen and bathroom renovations can add substantial value to your property, allowing you to sell the property for more. 

Reduced Time on Market

Renovations can help you get your property off the market as soon as possible. First-time buyers or those looking for an easy project tend to want to buy houses that do not require a lot of work, so by completing your own renovations, you can increase the likelihood of achieving a faster sale.

Renovations can be a great way to sell your house to potential buyers, but you do have to be cautious not to push your renovations, or insert too much of your personality into the property. 

Disadvantages of Renovating Before a Sale 

Now that you know more about the advantages of renovating your property, let’s explore some of the disadvantages of renovating a property before a sale. 

High Costs

It is no secret that renovations can be costly, especially if you are planning to make some major changes to the property. This can add to the stress of selling your property. By incurring high costs, you are not leaving yourself with any leeway in case you need to reduce the property’s price or haggle with buyers.

If you are making any financial commitment to renovation, you must ensure that it is feasible.

Delays in Sale Timeline

If you want a fast sale, renovations may be best avoided, as they can cause major delays in the sales timeline. Renovations don’t just happen overnight; they can take days or even weeks, depending on their complexity. 

To sell your property quickly, consider all possible renovations before listing it. There’s nothing worse than having to take your property off the market and relist it later.

Falling For Changing Trends

We are all guilty of falling for trends, and there are trends in every aspect of life, including renovations. Kitchens, bathrooms, and even basic home layouts all undergo trends; if a kitchen design is desirable on the market someday, that does not guarantee that it will be as well-liked in the next year. 

While renovating, you might be tempted to follow current trends, but this could be detrimental to your success when selling, so it is best avoided.

Narrowing The Buyer Pool

By renovating your property, you leave yourself little choice but to raise its price. This could narrow your buyer pool and make it difficult for you to locate a buyer. You are also cutting out those who want to fix up the property or add their twist to it with little effort. 

There are just some things in your property that you shouldn’t fix or renovate before selling, as it could cut off a lot of potential buyers. 

Advantages of Selling As Is

Now that you have a better understanding of the pros and cons of renovation, let’s examine the advantages of selling your property as is.

Saved Time

It’s no secret that renovations take time. If you want to sell your property quickly with little investment of your own time, avoiding renovation could be the answer. Renovation requires a significant commitment of time to manage the process effectively, which you might not have to spare.

Reduced Stress

Selling your house without renovations can alleviate stress by removing the need for time-consuming, costly, and labour-intensive upgrades before listing. Renovations frequently bring unforeseen delays, budget issues, and the complications of managing contractors, which can intensify the strain during an already hectic period.

Cost Effective

Selling your house without renovations can be a budget-friendly option, preventing investment in costly upgrades that might not provide a good return. Home improvements can be expensive, and there’s no assurance that buyers will value or pay extra for the enhancements you implement. 

By selling the property in its current state, you eliminate the risk of spending excessively on changes that don’t notably raise the selling price.

Disadvantages of Selling As Is

Some of the disadvantages of selling your property as is include:

Lower Sale Price

Neglecting renovations to your home can reduce its sale price, as buyers often consider the expense of essential repairs and updates when preparing their offers. 

Many buyers anticipate that move-in-ready homes will fetch a higher price, whereas houses requiring work are typically viewed as negotiation opportunities, and people will try to pay less for these properties.

Smaller Buyer Pool

You can often find yourself caught up in a catch-22 when it comes to renovating and not renovating. Both answers may narrow your buyer pool, as you are essentially either excluding people who want a move-in-ready property or those who want a property that they can fully renovate themselves. 

By selling as is, you may miss out on those willing to pay for a property that requires little to no work. 

Potential For Buyers to Withdraw Their Offer

If someone wants to secure a property, they may make an offer before properly surveying it. If they then survey the property and realise that it might need a lot of work, they may decide to withdraw their offer. 

This can lead to a lot of delay in the selling process and higher legal costs, and can often be avoided by being fully transparent about the property’s condition.

Sell Your Property With Lyons Estates

At Lyons Estates, no matter the condition of your property, there is the potential to make a good sale. When you sell with us, our goal is always to achieve the best price possible 

Whether you are looking to renovate your property or sell it as-is, we have the connections and know-how to help. 

Contact us today to learn more about how we can help you achieve a sale.