This seems like a silly question considering that for someone who is renovating to sell, one would simply follow the other. Obviously, both are normally regarded as project expenses, but one of them is not a necessity while the other will get you a higher price. You may be surprised by which is which. Before you jump to the conclusion that the answer is a for sale by owner option, think again.For those people who are sitting on the fence (pun intended) about whether they should renovate their house before selling, the following comparison may be an eye opener. There is a new kind of property marketing service offered by Revolutionary Real Estate, which could increase the profits and reduce risk of a property renovation. This may help many people to make up their minds about how to proceed. The table below compares two scenarios for selling a cosmetically tired property with a current valuation of $550,000. It shows the difference in outcome between spending the same amount of money on either a real estate agent to sell the property in its current condition or spending it on renovations. This is a good illustration of the ‘bang for buck’ given by each of these expenses.
|Renovation VS Real Estate Agent|
|Current property value||$550,000||$550,000|
|Less renovation cost||$13,750|
|Proceeds of sale / New value**||$536,250||$591,250|
|Net cost / benefit||-$13,750||$27,250|