Are you thinking of putting your house on the real estate market, but you’re not sure how high to make the home sale price? Online valuation tools can help you determine the price. However, if the sale price is not adequate and you want a better deal, you may want to partake in some home improvements.
Before pursuing home renovations, you will need to figure out the average cost to fix up a house to sell. To find the costs of necessary upgrades, you will want to evaluate your home’s sale price.
Then, you should figure out the various home repairs you will need to complete. Will it entail significant renovations or minor repairs? Are any cosmetic fixes needed, like new light fixtures or a fresh coat of paint?
Once you’ve figured out what things need fixing, it’s time to create a budget and determine the average cost to fix up a house to sell. Homeowners can fix their houses to get a higher price on the real estate market, but they’ll need to create a budget first. The information below will help you understand the average cost to fix up a house to sell.
Evaluating Your Property
Even if you want to fix up a house before selling, you will first need to assess the value of your home. You can always ask a real estate agent for an opinion. However, some other steps include using online valuation tools and getting a comparative market analysis.
You can find an automated valuation model on websites like Redfin and Zillow. As many as 22 percent of home sellers use online valuation tools to determine the best asking price and home value.
The automated tools use recent sales in the area, transfer tax assessments, real estate transaction deeds of ownership, and other public records. That information helps determine the final property value.
You can also ask your realtor to provide a comparative market analysis. That will give the real estate agent’s evaluation of your house and the local real estate market. You will get an estimate of your home’s value and what you can list as your asking price.
In addition, you can use the house price index calculator from the Federal Housing Financing Agency. That calculator has kept up with home sales since the 1970s. However, it does not account for inflation or seasonal fluctuations.
For a more accurate home price, you may want to hire an appraiser to determine a reasonable estimate of your property’s value.
Determining Different Types of Property Fixes Needed
Once you’ve figured out an estimate of your home’s cost, you will need to look through your house to see what needs fixing. Remember that potential buyers will likely ask for a home inspection, so you might need a kitchen remodel and other DIY fixes.
Also, don’t forget about landscaping work and improving your home’s curb appeal with some nice bushes and flowers or a nicer stone walkway. You can also hire stagers to provide some key home staging services. You will also likely need a deep cleaning to ensure your house is spotless.
Essentially, you may need major house repairs, minor renovations, and cosmetic fixes. Keep reading to find out the type of property fixes you may need to complete.
Major House Repairs
Do you need an entire kitchen or bathroom remodel? The kitchen is where families get together to enjoy meals, and prospective buyers looking at a new home often desire an updated, modernized kitchen. Bathrooms also need to remain spotless, and you’ll need to fix dripping faucets and plumbing problems.
If you have a fixer-upper to repair, you will need to focus on the biggest problems in your home, such as an HVAC repair. Before putting your property on the housing market, you will want to get an inspection done and complete major repairs. Some of the most significant issues to fix up often include:
- Heating and ventilation problems
- Plumbing issues
- Old electrical circuit systems
- An aging roof with leaks
- A damaged foundation
- Smoke and carbon monoxide detectors in disrepair
Minor House Repairs
Prospective buyers looking for their next home also pay attention to the little details of a home. For instance, do you have torn and broken window screens? If so, you’ll want to replace them using a window screen repair kit, which only costs about $10 to $15 from Home Depot or Lowes.
Do your hardwood floors have scratches on them? Do your carpets look stained and worn-out? Do you have outdated linoleum floors? If so, you may need to complete minor home repairs and replace your carpets and linoleum flooring. You can also refinish your hardwood floors, which may cost anywhere from $3,000 to $4,000. Do you have water stains? You can fix the problem with some drywall and a paint job.
Cosmetic House Repairs
Cosmetic house repairs will also add value to your home’s sale price. During a buyer’s market, a listing agent will advise specific cosmetic home repairs. These include replacing certain appliances, adding a fresh coat of paint, and completing landscaping work.
Outdoor landscaping work to boost curb appeal can give you a 100 percent return on investment (ROI). You can also replace your old windows, which can provide you with an 89.6 percent ROI. Even trimming your bushes and cleaning up the leaves from your yard can help elevate the value of your property.
Budgeting for Fixing Up Your House
Before you jump into fixing and renovating your home, you will need to create a budget to manage the costs. You should understand that houses need constant repairs and that is especially true before a home sale. You will want to set aside at least 1 percent of your home’s purchase price for home improvement projects every year, according to The Balance.
When you need major repairs, you can ask a contractor about the entire scope of a project. You should figure out the payment terms along with the costs of labor and equipment/materials. Find out if the renovation requires any permits and how much the permits cost.
For a simple way to budget for home improvements and smaller fixes, use online platforms. You can get some estimates and ballpark figures via online calculators to see how much a renovation may cost. Yet, these figures may not provide you with the exact costs of labor and materials.
When trying to determine the costs of material and labor, break each part of the renovation into categories. Keep track of local taxes of different materials and base it on the size of the space you will renovate. When it comes to labor costs, there are specific regulations to follow. Generally, you can double the material costs to get a rough estimate of labor prices.
You can go on HomeAdvisor to further figure out the average costs of major renovations and minor home repairs. Some of the more expensive fixes include:
- Foundation repairs
- Replacing roofing tiles or an entire roof
- Fixing water damage and mold growth
- Restoring or replacing water heaters
- Renovating after termite damage
Working Out The Average Costs to Fix Up a House
The average costs of fixing up some of the more extensive issues tend to have a large range. For example, repairing the foundation of a home can cost as little as $450 to as high as $11,000, but it depends on how extensive the damage is. Repairing a sloping floor likely costs much more than fixing minor cracks in the house.
Repairing a roof also has a wide range of costs. A complete roof replacement costs about $6,000, while a smaller roof repair job generally costs around $650. Replacing a water heater costs about $1,000, while repairing one is about $520. Water damage repair costs an average of $2,330.
Making Compromises on What Needs to Be Fixed
Despite making a budget, homeowners often find themselves in a sticky situation where they don’t have enough funds to cover every home improvement project. That’s when it’s time to compromise on what repairs to complete.
Pick some of the more important renovation projects. These usually include a kitchen remodel, a bathroom upgrade, and landscaping. When budgeting for a kitchen renovation, you should set aside between 5 to 15 percent of your home’s value. For example, spend $15,000 on the kitchen remodel for a home that costs $300,000.
Yet, even with a kitchen renovation, you can compromise when certain things get too expensive. You can paint your cabinets and replace the handles instead of putting in whole new cabinets.
Essentially, selling a house in a poor condition won’t get you as high of an offer as you prefer. Specific renovations will get you a good return on investment. Yet, if you need to sell your Pennsylvania property quickly due to a new job, consider seeking out cash home buyers in Philadelphia.