Selling a home: Is it a good idea to renovate before listing?

Selling a home: Is it a good idea to renovate before listing?

ingresso con parquet e vaso con pianta da appartamentoWhen homeowners go to sell their home with the assistance of a real estate attorney in Chicago, they strive to sell their house for as much as possible. One strategy many homeowners use in order to achieve this goal is to renovate major aspects of their home, like their kitchen, before putting it up for sale. Although renovating can be beneficial, homeowners should carefully consider which projects to perform to obtain the highest return on their investment.

Some renovations are better than others

Some home sellers automatically assume that performing a major kitchen remodel is the most profitable home improvement project to complete. However, certain renovations have a higher return on investment than others. In Remodeling magazine’s annual Cost vs. Value Report for 2014, the renovations that brought the highest percentage return on investment included:

  • Replacing the entry way door
  • Adding a wood deck
  • Converting an attic into a bedroom
  • Installing a new garage door
  • Performing a minor kitchen remodel

Some of the home improvement projects that provided the lowest return on investment included home office remodels, sunroom additions, backup power generators, master suite additions and bathroom additions.

Investing the right amount

When those working with a real estate attorney in Chicago decide to perform a major renovation, they should make sure that they invest the right amount in the project. For example, if a homeowner wants to sell his or her house that is worth $100,000 and intends on remodeling his or her kitchen, he or she should avoid investing $75,000 in the renovation. In this situation, it is unlikely that the home will sell for $175,000 or more.

Those who intend to sell their home and want to perform a kitchen renovation should only spend approximately 25 percent of their home’s total value on the remodeling project. Additionally, those who want to update their bathroom should only plan to spend between 12 to 15 percent of what their home is worth on the venture.

Homeowners should also keep in mind that renovations that occur within the home’s existing structure often return more value and are usually cheaper to complete. These renovations include ones that don’t require the roof or the foundation to be expanded or for a room addition to be completed. However, the profitability of a renovation project also often depends on the region and neighborhood where the home is located.

Taking the time to consider the profitability of a potential home renovation project before selling can help homeowners ensure the success of the endeavor. Before going forward with a remodeling project, homeowners may benefit from consulting with a real estate attorney in Chicago who can provide them with legal guidance.

Get Help Today!

Simply fill out the our online form, and one of our attorneys or staff members will contact you to schedule your appointment.

We value your privacy. Your information will not be shared without your permission.

captcha

The use of the internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.
I have read and understand the disclaimer

Memberships & Associations