Home Renovation Rules for Sellers and Flippers

I deal with a lot of people who are getting ready to sell a home and they want to know if they should renovate it first or sell it as it sits.  Many realtors will tell you to put in the renovation.  Of course, a prettier home is easier to sell which makes the realtor’s job easier.  A renovated home will also likely sell for more so that means a bigger commission, double bonus.  That’s great for the realtor but just because the home sells for more that doesn’t mean you’ll put more money in your pocket.   

Many of my clients ask me if they should renovate their kitchens or baths to make more money on the sale.  The hard fact of the matter is that very few renovations bring more in resale than what they cost.  It can be even more financially punishing if the renovations are not done well or don’t look good.  Since very few of us are interior designers, here are a few simple rules I use to guide my home renovations.

Keep it simple:

First and foremost, keep it simple.  Many of us have grandiose visions but marble tile alone does not make a bathroom look good.   If not done correctly, and if it does not tie into a sensical theme, then it just looks bad.  Design your home to appeal to the largest group of people.  I try to make it a sort of blank canvas upon which anyone can project their own vision.

Workmanship is More Important than Materials or Design:

Workmanship is more important than materials.  If you have poorly installed marble tile then you may as well have not done anything at all.  You can get a really nice tile for $2-3 per square foot.  Good clean installation, with attention to detail, will make all the difference.  You can also add some simple patterns for that added sizzle, but, again, make sure it’s not overdone or ostentatious. 

Honest Materials:

I prefer real materials.  But, more importantly, I don’t like materials that try to look like something else.  I would rather have a nice looking formica countertop than a formica countertop that’s trying to look like granite.  There are some new materials that do a better job at looking like real wood or stone but as a rule I like my wood to be wood, my stone to be stone, my ceramic to be ceramic, etc.

Be Economical with Material Selection:

Don’t spend money just for the sake of spending money.  There are some materials and fixtures that have very little quality difference.  You can spend $300 or a $1,000 on a standard fiberglass tub but either way you’re getting a big fiberglass bucket and your buyers aren’t going to know or be willing to pay for the difference.  With that said, avoid particle board and laminates.  There is a big difference between cheap cabinets and quality cabinets.

Neutral Colors:

Use neutral colors.  We all know this and it annoys some people but it’s a hard proven fact.  Bold colors will almost certainly turn some buyers off.  And, most people don’t know how to bring bold colors together.  I confess I typically use the standard beige satin paint for the walls and glossy white trim.  I do like to paint the bathrooms a different color than the rest of the house.  I often use a sage green or a light gray.  I found that if I paint the entire home the same color then the listing just looks like a big beige blob when a buyer is scrolling through the pictures on the internet.

Splurge and Risk Strategically:

Find some strategic places to splurge and add some memorable sizzle.  Renovating for resale is all about being economical.  But, you also don’t want to be tired and boring.  It’s a fine line.  Home buyers are looking at a dozen homes in a day.  You need to give them something to be excited about, something that makes the home remember able and exiting.  You can be a little daring with these items.  Find the focal point, or make a focal point in some or all of your major spaces: kitchen, baths, and living room.  Fireplace mantels are a great location to add some sizzle.  Nice tile backsplashes in the kitchen and or higher end countertops.  Lighting is another great place.  You can be bold with a chandelier using an industrial or modern fixture.  It can even clash a little with the home to make it stand out.  I always put a higher end vanity in the bathroom and I always stage bathrooms with bright color shower curtains, towels and soap dispensers.

Pay Attention to Details:

Pay attention to the small details.  This is the most important rule.  I see so many homes, particularly flipped homes, where the owner puts in a beautiful kitchen and baths, paints and installs new floorings but then the old outlet covers are left on, yellowed and painted over.  There are small maintenance problems left undone.  These are things that don’t take much to fix but they leave a bad taste in the home buyer’s mouth.

Most people want a clean, quality, maintenance free home to move into.  The biggest thing you can do is go around and take care of all the little maintenance problems like rotting wood, leaking faucets, chipping paint and unruly landscaping.

Before you begin any renovation project to increase your return on investment, make sure you check the comparable sales in your area.  It’s usually pretty easy to find both renovated and un-renovated sold homes.  If a fully renovated home is selling for $50,000 more than an un-renovated home then do the math.  If your renovations are going to cost you $75,000 then it’s best to sell the home as it sits.  Let the buyer renovate the home to their own specific tastes and save yourself all the work, risk and hassle that comes with a renovation project.