Monday, February 20, 2017

How Home Renovations are Helping Home Sellers in a Buyer's Market

germany real estateAcross the country, home sellers have had a difficult time because of the lack of buyers who have the ability to pay legitimate prices for new homes. With the economic recovery being somewhat sluggish and people being a bit reluctant to leave their existing homes, sellers have experienced trouble even though the housing supply has been down in some places. This has left many home owners in a difficult situation. What should they do to make their homes stand out from the crowd? The answer for some has revolved around renovations.

There has long been debate among general contractors about whether home renovations add more value than they cost. If a person puts $30,000 into a home renovation, for instance, will that person experience an equivalent gain in his or her home value? Many today believe the answer is yes, and more, they believe that renovated homes will sell more quickly, saving home sellers a tremendous amount of money that might have otherwise gone to fees or double mortgage payments. The trends suggest that today's home buyers are looking for something a little different in their homes. They want something clean, updated, and move-in ready.

Updated kitchen
Home renovations allow home owners to respond to the trends in home buying. The housing market goes through shifts, with buyers desiring different elements depending on the year. In some eras, people are looking for kitchens with big double ovens. (Me! Well, not necessarily the double ovens, but the kitchen is always a big factor when I look at a house.) In other years, buyers will pay more money for an updated bathroom. Other years bring a heightened desire among buyers for a so-called "man cave" or perhaps a hometheater room. During a renovation, a contractor can respond to the current trends, making the home into one that can be more easily sold on today's market.

Home sellers looking for easy ways to get their homes sold and off the market must consider whether a renovation is right for them. Many sellers have decided to invest the money up front, trusting that a contractor will create more value than he takes in the project. It is an interesting strategy that seems to be working out across the country, as sellers are seeing their homes fly off the market when they add the touches that buyers want.