Spend $40K, Make $60K? The Real Math Behind Pre-Sale Renovations
Many people sell their homes as-is because they don’t feel it’s worth it to put in the time and money for a renovation before placing it on the market. Are their reasons valid? Depending on how you approach your home remodel, a designer renovation could actually turn into a profit! This guide discusses how you can use a pre-sale renovation to get more money back for your home in Brandon.
Meet with our award-winning team of interior designers during an in-house consultation to explore your best options for pre-sale renovations that can boost your home’s value. Reach out to Revive Design and Renovation Brandon today!
How Home Value Surpasses What You Put In For Renovations
When you invest in renovations for your home, you can factor the expenses for the remodel into the calculations for your home’s overall value. But wouldn’t the amount come out even, making it not worth the effort? Not always.
Undergoing renovations can take up a big portion of your calendar. Larger remodels can take weeks to complete, and there’s the inconvenience of living around construction sites and staying out of the way of contractors.
Why does this matter? Luxury home buyers would rather pay extra to not go through that process. This is why homeowners in Brandon can often charge more for a move-in-ready interior.
The more rooms you renovate, the more convenience you’re offering to your buyer. Read our guide on “How a Cohesive Whole-Home Design Increases Property Value in Tampa’s Luxury Market.”
Will My Renovation Come Out As a Profit?
There is no universal amount or percentage that you can use to upcharge your home after remodeling. What you include in your high-end home remodel determines how much of a profit you’ll make for your home in Brandon, if any at all.
When planning out your renovation, it’s wise to keep expenses under 30% of your home’s value. This will help you stay within a profit range and out of the red zone. Make sure to factor in an extra 20% to your projected renovation expenses for accidental repairs involving plumbing or electrical systems.
Ultimately, your net profit will be your home’s new resale value minus the added expenses of renovations, selling fees, holding costs, and purchase price.
|
When the goal is to boost your market value with pre-sale renovations, you need a team that can guarantee top-tier quality. View our accolades to see what award-winning designers in Brandon can do for you! |
How to Budget For Successful Turnarounds
You will only make a big profit if you opt for big renovations. But going overboard will only waste your time and cause financial stress. Luxury remodelers in Brandon know how to budget projects that meet in the middle for a rewarding turnaround:
- Cosmetic renovations like re-painting the walls or swapping light fixtures have an almost guaranteed $100 ROI, but are less impactful due to being smaller expenses.
- Room refreshes that update aesthetics and restore function can account for around 10% of your home’s value. Replacing appliances in a custom kitchen or adding spa-like fixtures in a custom bathroom are great examples.
- Whole home remodels are the best way to break the 10% boost in home value, but it also takes the most effort. The final product must also stand out in the competitive market for optimal ROI.
Ready to Sell Your Home the Right Way? Plan Your Pre-Sale Renovation With Revive Design and Renovation Brandon!
We know all of the best ways to boost your home’s value in Brandon with a pre-sale renovation that’s worth the investment. Call Revive Design and Renovation Brandon today at (813) 680-4103 to schedule a zero-obligation consultation for your 5-star custom home remodel!
