If you want to move to a new house but have to sell your current one first, you may wonder what you should do if your current home needs some work. There are two main options to choose from in this situation. One is to sell the home just as it is, and the other is to remodel the home prior to listing it with a real estate agency. Here are some tips to help you decide which option to choose.
Do you have money to invest in it?
The first thing to look at is the amount of money it would take to renovate everything in your home that is not in good condition. After calculating this amount, you will need to think about whether you can afford it or not. If you do not have any cash on hand and would have to borrow money to do the work, it might not be worth it. If you do have cash on hand, remodeling the house could be a good move to make.
Are you willing to sell the house for what it is really worth?
Secondly, if you sell your house in its current condition, are you prepared to accept an offer on your house that reflects its current value? The current value of your house might not be very high, especially if the house needs a complete overhaul. Do you have enough equity in the home to handle and accept a really low offer? This is always something you should consider as you decide what to do with your house.
Would remodeling it yield a much higher profit?
The final thing you will need to consider is how much money you would make on the house sale if you chose to remodel it before you sold. A good way to calculate this is by adding up how much you owe on the house and how much it would cost to renovate. Next, determine how much your house would likely sell for if all the work was done. Finally, subtract the amount you would have in the house from the amount you could sell it for to find out the approximate amount of profit you would make on the sale if you renovated the house.
Carefully considering these three questions can help you decide what you should do. If you have questions about this and would like professional advice, talk to a real estate agent.