Does Remodeling Your Home Before You Sell It Really Pay Off?

One of the most common questions our real estate advisors receive are questions about whether a home should be remodeled before it is put on the market. In most cases, the answer is no. Research shows that although home buyers prefer a home that is remodeled over one that is not, they are generally not willing to pay the home owner for 100% of the remodeling costs. As a result, home sellers generally do not recoup the costs they expend on the re-model in the final selling price of their home.

As you might expect, however, not all remodeling projects are the same. Some have a higher rate of return than others. For example, a minor kitchen remodel costs on average $22,000, and will increase the value of the home by $23,000. Window replacement with wood windows costs on average $13,000, and will increase the value of the home by $13,500. On the other end of the scale, a home office remodel costs on average $30,000, but it only increases the value of the home by an average of $21,000.

Another challenge with remodeling a home comes in predicting what potential home buyers will like. For this reason alone, it often makes sense to forego an expensive remodeling project and instead adjust the asking price of your home to reflect the fact that it is in need of an update. This way both you and the home buyer win – you don’t have to spend money on a remodeling project that you can’t fully recoup and the home buyer benefits from a lower purchase price.

Still have questions about whether to remodel your home before you put it on the market? Get advice from an experienced Real Estate Advisor when you post your question in the Orange County Real Estate Information Center.

<< Back to Orange County Home Seller Information