Let’s take a closer look at why you shouldn’t do extensive renovations on a home you’re planning on selling soon and what you should do.


With the advent of HGTV and other home improvement-related media, the notion of buying and flipping a fixer-upper has begun to appeal to a broader range of people. However, there’s always a downside to consider, even if you’re already a seasoned flipper. Here’s why it might not be the best idea to perform extensive renovation projects on a house that will soon be back on the market.

💵 It Might Not Be Worth the Investment

While low-cost renovations can boost the value of a home, MarketWatch warns that the cost-value ratio usually declines on more expensive renovations. While replacing a storm door or refurbishing a deck might add a significant amount of value to the house, you’re likely to recoup just three-quarters of your investment from a five-figure kitchen remodeling project.

Renovations Concept with man, woman, dog among supplies

This isn’t a major issue if you’ve already built up a large amount of equity, but if you purchased the property in hopes of making a quick turnaround, this isn’t the best approach.

⚠ It Can Make the Home Harder to Sell

Take a good look at the average price of the homes in the area. Rules of Renovation notes that buyers tend to look in certain neighborhoods not only because they like the general aesthetic and location, but also because the houses there are within their price range.

If your renovations put the house in a higher price bracket, it might scare off potential buyers who were looking for something on the less expensive side. Even if they do make an offer, it could be significantly lower than your listed price, thereby negating the benefits of renovating in the first place.

👎 It Could Alienate Buyers

As long as we’re on the subject of targeting the right buyers, remember that your planned renovation projects might not be in line with their tastes. You’re likely to generate the highest return on your investment in the kitchen and bathroom areas, but your idea of a dream kitchen could be significantly different from that of your potential buyer.

Home Renovations Image - Couple looking at paint samples

If you decide to keep things tame by repainting instead of renovating, stick to a neutral palette for best results. WOW 1 Day Painting recommends light gray, taupe, and white for selling in 2019. It might look boring to you, but to a buyer, it looks like an opportunity.

🤔 What should I do?

We’re not saying that you should forego sprucing up the property entirely. Repairing a crumbling stone wall, freshening the paint, replacing worn or broken appliances with newer models—all of these actions can help you to get a solid return on your investment. If the home needs significant structural work, however, it’s probably not the best choice for a flip.

Couple talking to real estate agent in kitchen

Facebooktwittergoogle_plusredditpinterestlinkedinmailFacebooktwittergoogle_plusredditpinterestlinkedinmail
Summary
Why You Shouldn't Do Extensive Renovations on a Home You're Planning on Selling Soon
Article Name
Why You Shouldn't Do Extensive Renovations on a Home You're Planning on Selling Soon
Description
Let's take a closer look at why you shouldn't do extensive renovations on a home you're planning on selling soon and what you should do.
Author
Publisher Name
The Wilson Group
Publisher Logo
View All Helpful Tips Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.