Last year, homeowners invested over $500 billion in home renovations, a trend expected to keep growing due to rising disposable incomes and a shift toward aesthetic upgrades. Contributing to this surge is the growing recommendation from real estate agents for homeowners to make key improvements before listing their homes for sale. This modern approach leverages the expertise, funding, and skills of a pre-sale renovation firm to help homeowners make strategic improvements that maximize their home’s final sales price.
A pre-sale renovation firm partners with real estate agents to achieve one primary goal: maximizing the homeowner's return on investment (ROI).
Most homeowners currently sell their homes as-is, but research shows this approach leaves 15-20% of potential profits on the table. This creates a $300 billion annual opportunity for agents and sellers. By making the right pre-listing improvements, homeowners can unlock significant profits.
For some homeowners, the financial impact can be life changing. Studies show that sellers who renovated before listing earned an average of $186,000 more in profit, with an average ROI exceeding 250%.
Agents benefit as well, as a higher ROI for homeowners also increases their gross commission income.
Traditionally, speed was a priority in real estate, with agents rushing to list homes quickly. However, it turns out that taking time to renovate can lead to a better ROI. Home flippers know this well—they focus on identifying homes that will yield the highest return with the right improvements.
Pre-sale renovation firms adopt this model, helping homeowners make the best improvements to maximize their sale price. The process typically includes:
Not all sellers benefit from pre-sale renovations. Well-maintained homes or properties that have already undergone significant updates may not see enough ROI to justify the effort. Additionally, local market conditions can influence whether this strategy is worthwhile.
A trusted pre-sale renovation firm will help agents and homeowners make informed decisions about whether to pursue renovations based on projected ROI. Exploring this option ensures that no money is left on the table.
For most homeowners, guiding them through the benefits of a pre-sale renovation is a win-win. Renovated homes not only sell for more but also sell faster. Homeowners avoid the stress, time, and effort of managing the renovation process themselves, knowing that they’re making the right improvements from the start.
It’s all about what today’s buyers are looking for. Millennial buyers, the largest segment of the market, prioritize move-in-ready homes. In fact, 70% of Millennial homebuyers would choose a smaller home with fewer features if it meant it was move-in ready.
By renovating before selling, homeowners can maximize their property’s value, streamline the selling process, and achieve a financial outcome that supports their next chapter in life.
5 key area to focus on for maximizing the resale value of your home
Selling a home is all about maximizing its value, and strategic improvements can help you achieve the best return on investment (ROI). Here are five home upgrades that can significantly boost your home's appeal and sales price.
Your home's exterior is the first thing potential buyers see, making curb appeal a top priority. A well-maintained and attractive exterior can create an immediate positive impression and elevate the perceived value of your property.
Start by enhancing your softscape—flowers, shrubs, trees, and lawn care. A manicured lawn, trimmed hedges, and colorful flower beds can make your home feel more inviting. Also, consider refreshing your exterior lighting, giving your front door a new coat of paint, or even replacing it to create a welcoming entrance.
If the exterior paint is worn or outdated, a fresh coat can work wonders, making your home look clean and well-cared-for. Investing in curb appeal not only draws buyers in but sets the stage for a positive viewing experience.
Once buyers step inside, two things stand out immediately—paint and flooring. Fresh, neutral paint can provide one of the highest ROIs, giving your home a clean, updated look. Equally important is having consistent, high-quality flooring throughout. Avoid mixing different flooring styles, as it can make your home feel disconnected.
Opt for cohesive flooring that matches the overall style of your home, whether it's hardwood, luxury vinyl plank, or tile in key areas like entryways and kitchens. If your current floors are outdated or worn, consider replacing them. Refinishing hardwood floors can also bring back their original shine and appeal to buyers.
Kitchens are often the focal point of a home, and updating this space can offer a high ROI. While a full remodel can be expensive, there are cost-effective ways to refresh your kitchen. If the cabinets are in good condition, consider painting or resurfacing them, adding new countertops, and upgrading the hardware.
Replacing outdated appliances with modern, energy-efficient models can also add value. Be sure to tailor your upgrades to match the expectations of homes in your area to avoid over-improving. A well-designed, updated kitchen is a major selling point for potential buyers.
Bathrooms are another area where strategic updates can significantly boost ROI. Focus on the primary bathroom, as it has the most potential to impress buyers. Modernize with updated vanities, rainfall showers, and stylish lighting fixtures.
You don’t have to overhaul every bathroom—simple updates in secondary spaces can also make a big difference. Replacing vanities, refreshing tiles, and upgrading fixtures can give your bathrooms a cohesive and polished look, tying the design together across your home.
Never underestimate the impact of small upgrades. Simple touches like new light fixtures, updated faucets, and modern hardware can make your home feel more current and well-maintained. Accessories are like the finishing touches that complete the look, much like jewelry complements an outfit.
Ensure that these updates align with the overall style of your home, whether it’s modern, minimalist, or traditional. Consistency is key—choose accessories with a cohesive finish and style to create a polished look throughout your home.
Selling a home is about creating an emotional connection with buyers. By focusing on these five key areas—curb appeal, paint and flooring, kitchens, bathrooms, and accessories—you can create a space that feels fresh, inviting, and ready to move into. Thoughtful, targeted improvements can leave a lasting impression, help you secure the best possible price, and maximize your ROI.
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