Is home remodeling worth it?
When you decide to sell your house, the condition of your property may be a huge factor in the overall speed and success of your sale. According to the NAR (National Association of Realtors®), 45% of homeowners want to buy a move-in ready house. If you’re selling a house that needs repairs, you’ve effectively narrowed your pool of potential buyers by half—and you haven’t even started the home-selling process. That’s why it’s important to consider just how much work you may need to put into your house before putting it on the market, what repairs you should prioritize, and if it could be more beneficial to sell your house “as is.”
Things to think about before you sell your house
When you’re wondering if you should sell your house “as is” or renovate, you should:
- Calculate the time: Renovations don’t happen overnight. The time it takes to complete a project depends on its scope. Small home-remodeling projects can be done over a weekend or a month, but bigger projects need more time for completion. Major renovations can take up to a year to complete, depending on the scope of the work.
- Compute the cost: Home remodeling isn’t cheap—the average cost to renovate your house can run anywhere from $20,000 to $100,000, depending on the size, style, and quality of your house. This comes out to about $10 to $60 per square foot. If you decide to renovate before you sell your house, you may want to compare combined, projected costs of your repair projects to the typical costs of selling a house.
- Consider the market: Even if home remodeling is within your budget, it might not be beneficial for you to fix up your house. If the market isn’t good for sellers, you could find yourself paying extra holding costs or lowering your asking price after making expensive repairs. This means you may not profit from your home repairs, and you could even experience a net loss.
How much does it cost to renovate a house?
The cost to renovate a house varies depending on its size, features, and condition. On average, Americans spend around $22,000 on home-renovation projects, according to Rocket Mortgage. Some of the most common renovation projects and their associated costs include:
| New asphalt roof | $10,053 |
| New garage door | $2,028 |
| Vinyl siding | $9,227 |
| Vinyl windows | $3,941 |
| Hardwood flooring refinish | $4,733 |
| Insulation installation | $1,817 |
| Bathroom renovation | $10,978 |
| Kitchen renovation | $26,845 |
Source: Today’s Homeowner and Architectural Digest
What are the benefits of home remodeling?
According to Today’s Homeowner and based on a remodeling report from the NAR, home-remodeling projects can give you a 69% return on investment (ROI) on average. Here is a breakdown of expected ROI for different home-remodeling projects, with data provided by the NAR:
Exterior home-remodeling projects ROI:
| New roof | 100% |
| New garage door | 100% |
| Vinyl siding replacement | 82% |
| Vinyl windows replacement | 67% |
Interior home-remodeling projects ROI:
| Hardwood flooring refinish | 147% |
| Insulation installation | 100% |
| Bathroom renovation | 71% |
| Kitchen renovation | 67% |
Source: National Association of Realtors®
As you consider whether you should sell your house “as is” or renovate, you should be aware of some of the benefits and drawbacks that come with your decision.
Home remodeling:
- Pro: You increase the value of your house as well as your potential pool of buyers.
- Con: You may not recoup the full cost of repairs. On top of that, you may experience delays or need to pay hidden costs.
Selling your house “as is”:
- Pro: You sell your house faster at a lower upfront selling cost.
- Con: You may need to sell at a lower price and offer contingencies to buyers.
You can sell your house “as is” or renovate.
Should you renovate before selling? Doing some home-remodeling projects may help you sell your house, but it’s no guarantee. Even with a potential for profit, it could take a considerable amount of time and money to make your house ready for the market. But with HomeVestors®, you can sell your house without the need to complete any home-remodeling projects. We buy houses “as is” through a simple, 3-step selling process that focuses on you. When you work with us, you get:
- An interested buyer who won’t ask for contingencies
- An in-person assessment toward an offer, regardless of your house’s condition
- The freedom to sell your house on your terms
Since 1996, we’ve helped over 150,000 homeowners sell their houses the way they want. Ready to skip the home remodeling and go straight to selling? Sell your house the easy way with HomeVestors.
