If you have clients asking if they should renovate their home before putting them on the market, you need to be able to answer these questions. Do do so, you’ll need to ask yourself and your client a few questions to determine the value of the renovation’s return on investment (ROI). Keep reading to learn more about providing the best guidance on renovation ROI.
Determine the goal of the renovation project
Whether the seller is planning a large-scale renovation or just making some minor updates, defining the goals is an important first step. Take some time to talk to the seller to determine the goal of the renovation project. After deciding what the project will look like, Realtors should discuss the potential outcomes of the renovation project and whether renovating will increase the value of the home. Setting realizable goals for the renovation project will help ensure that the end result achieves the desired outcomes.
Do your research – which projects provide the best return?
A realtor’s job is to keep their clients informed, and one of the larger decisions a seller has to make is which renovation project will give them the best result when selling their home. Some large renovations may not provide an adequate return on investment while some smaller changes may make a significant impact. Kitchen and bath renovations typically provide better returns on investment however, it is possible to go overboard. Smaller changes to exterior curb appeal or fresh paint may be relatively low-cost but can have a huge impact on the overall appearance of the home.
It is important for realtors to encourage their sellers alike to do their research and understand the local real estate market before taking the leap. Realtors can provide guidance but unfortunately can’t make these decisions for clients. Making well-informed decisions concerning real estate investments starts with understanding the available options, so realtors have a responsibility to ensure their buyers and sellers are as prepared as possible during this process.
Recommend the seller get quotes from different contractors
Realtors can be a real asset to a seller during their research for the contractor with the best prices and services. While it is important that sellers don’t go overboard with expensive renovations, it is equally important that work is completed professionally. While many landscaping, painting, and repairs are do-it-yourself, Sellers should not take on projects that they are not qualified to complete just to save a few dollars. When it comes to comparing quotes from contractors, real estate agents should encourage their clients to shop around before settling on a contractor. Research local pricing norms and the industry standards of certain contractors and upgrades as well.
Keep expectations realistic and renovations neutral
Once the contractor and project are selected, the next step is to focus on actually executing a plan for renovations. An extensive project like a kitchen overhaul could delay the listing date. Be sure to discuss this with the seller so everyone maintains realistic expectations. During a renovation, sellers may be excited to bring out their creativity but a Realtor should encourage a more neutral approach. This will appeal to most buyers and result in a quicker sale.
Renovating a home can be a great way to add value for sellers. Realtors play an important role in guiding a seller toward the renovation that will provide the most bang for their buck. By following these simple steps, you can ensure that your renovation project will go smoothly and you’ll end up with the home of your dreams!
#homerenovation #listing #realestate #update #renovation #home #forsale #contractor #guidance #estimates #returnoninvestment
