Before You Spend $50,000 Renovating Your House to Sell It, Read This

By Will Savino, Licensed NYS Real Estate Salesperson

Patriot Real Properties

I’m a real estate salesperson, but I’m also a contractor and a real estate investor. I’ve renovated and flipped homes myself.

So when I walk into a house, I probably look at it a little differently.

I see the things that need work, of course. But I’m also thinking about what actually matters to a buyer, what can add value, what probably won’t, and whether putting more money into the house makes sense at all.

That’s why one of the first things I tell homeowners who are thinking about selling is:

Please don’t start renovating just because you think you have to.

You may be surprised by how much your house is worth exactly the way it is.

That $50,000 Renovation May Not Bring Back $50,000

I understand the thinking.

The kitchen is old. The bathroom needs work. The floors could be replaced. The basement hasn’t been touched in years.

So you start making a list.

New kitchen: $20,000 or $30,000.

Bathroom: another $10,000.

Floors, paint, landscaping and miscellaneous repairs—and suddenly you’re looking at a serious amount of money.

But here’s the question I would ask before you spend any of it:

Will doing this work actually put more money in your pocket when you sell?

Sometimes the answer is yes.

Sometimes the answer is absolutely not.

And knowing the difference matters.

I’ve Been on the Other Side of the Deal

My experience as a contractor and investor is useful here because I’ve looked at properties from both sides.

I’ve looked at homes as an agent trying to determine how to position them for the market.

I’ve also looked at homes as an investor asking: What does this really need? What will the renovation cost? What’s cosmetic? What’s important? And what could this property ultimately become?

A dated kitchen doesn’t automatically mean you need a new kitchen.

An ugly paint color doesn’t mean you have a problem.

And a house that hasn’t been updated in 20 years isn’t necessarily a house nobody wants.

There are buyers looking for move-in-ready homes.

There are also buyers and investors specifically looking for houses they can make their own.

Sometimes Less Is More

There are situations where I may recommend doing a handful of things before we list.

Maybe we paint.

Maybe we clean up the landscaping.

Maybe there’s one repair that’s going to become an issue during the sale anyway, so it makes sense to handle it now.

That’s very different from renovating half the house.

I’d rather see a homeowner spend $3,000 intelligently than spend $30,000 because someone told them everything had to look brand new.

The goal isn’t to create the house you would buy.

The goal is to figure out what makes financial sense for your sale.

And Sometimes, I Want to See the House Exactly As It Is

This is the other side of what I do.

I’m always looking for interesting properties and potential projects.

If you have a house that needs significant work, an inherited property that hasn’t been updated, a renovation you don’t want to finish, a rental you’re ready to move on from, or simply a property you don’t want to put more money into, I’d like to see it.

That doesn’t automatically mean you should sell it to an investor.

It doesn’t automatically mean you should renovate it.

And it doesn’t automatically mean you should put it on the traditional market.

Let’s figure that out first.

Depending on the property and your situation, one option may make considerably more sense than another.

Before You Call the Contractor, Call Me

If you’re thinking about selling and staring at a long list of things you think you need to fix, let’s take a look at the house before you start writing checks.

I’ll give you my opinion as someone who understands real estate, construction and investment properties.

Maybe we decide there are a few improvements worth making.

Maybe we decide to sell it exactly as it is.

And maybe I look at it and say, “This is exactly the kind of project I’ve been looking for.”

Either way, you’ll know your options before you spend the money.

And that’s a much better place to start.

Will Savino

Licensed NYS Real Estate Salesperson

Patriot Real Properties

631.889.9080

Will@PatriotRealProperties.com

Will Savino is a Licensed Real Estate Salesperson affiliated with Patriot Real Properties. If Will or an affiliated entity has an interest in purchasing a property, that interest and his licensed real estate status will be disclosed as required. Property values, renovation costs, market conditions and potential sale results vary. No particular financial or sales result is guaranteed.