If you’re reading this article, then you’re probably worried about selling your house which is in need of serious repairs. It could be that your house is outdated, unsafe, nonfunctional, too expensive to keep or all the above. Whatever the case, you’re probably feeling overwhelmed by dollar signs. Renovations are time-consuming and expensive, and if you choose to list your house on the market “as-is,” you might even lose more money because of monthly mortgage payments .
Whether you choose to renovate or not, if you’re not informed about your options, you’ll likely lose money. In this article, I’ll let you know about your options when it comes to selling a house that needs work. This includes, what to prioritize when renovating, how to pay for renovations, and who to sell to if you decide to sell your house “as-is.”
Getting a Return on Your Investment
Which Renovations Should I Do?
Once you decide to sell your home, you need to choose what parts of it need to be updated. This sounds easy, but it’s where most people go wrong. Updates to certain areas, such as bathrooms and kitchens, can give your house a huge boost in selling potential. But adding or renovating certain features may decrease your profits. For example, if you live in Michigan and want to add an outdoor swimming pool to your property. Michigan has long winters, and a buyer might not want to take on all the responsibilities that come with owning a pool for just a few summer months. These are extreme examples, but you get the idea.
To help you get on the right track, here’s a list of the Top 15 Home Updates that Pay Off and their average return at resale:
- Minor Bathroom Remodel: 102%
- Landscaping: 100%
- Minor Kitchen Remodel: 98.5%
- Exterior Improvements: 95.5%
- Attic Bedroom Conversion: 93.3%
- Major Bathroom Remodel: 93.2%
- Major Kitchen Remodel: 91%
- Deck, Patio or Porch Addition: 90.3%
- Basement Remodel: 90.1%
- Replacement Windows: 89.6%
- Family Room Addition: 83%
- Bonus Room Updates: 72.8%
- Living Room Updates-Décor: 66%
- Bedroom Updates: 52%
- Living Room Updates-Walls and Floors: 40%
These are all great options, but each of them have different costs.
How Much Will Renovating My Home Cost?
- Minor Bathroom Remodel
- To replace the tub, surround tile, sink, vanity, floor, toilet, and fixtures it’ll cost around $10,500.
- The average amount spent on landscaping with a designer is $4,967.
- Minor Kitchen RemodelThe average minor kitchen remodel costs $14,913. This primarily includes refacing cabinets and drawers, fixtures, laminate countertops, tile flooring, wall oven, cooktop, and sink.
- Exterior Improvements
- This includes your siding, paint, and front entry. The average rate in the U.S. to replace vinyl siding costs $7,239.
- Attic Bedroom Conversion
- The average cost for this is $39,188.
- Major Bathroom Remodel
- A major bathroom remodel could possibly include relocating water pipes to move a bathtub, sink, or toilet; adding a linen closet, new lighting, heated floors, an exhaust fan, and more. This type of renovation can cost around $26,000 or more.
- Major Kitchen Remodel
- This type of renovation can include adding an island, granite countertops, stainless steel appliances, new flooring, new stainless sink and vent hood, and more. A renovation like this, in a midrange home, averages around $43,000.
- Deck, Patio or Porch AdditionAdding a 16x20 ft. simple wood deck costs around $11,000
- Basement Remodel
- The average basement remodel costs around $51,000, but this type of renovation should always focus on fixing water issues first and then superficial work.
- Replacement Windows
- Replacing ten 3x5 ft windows will cost around $10,000.
- Family Room Addition
- If you would like to add a family room or addition$54,000al family room to your house, the average cost for this is around.
- Bonus Room Updates
- Converting an extra room into a home office or some other type of space will run you around $13,000.
- Living Room Updates-Décor
- A minor living room update of new light switches, outlet covers, floor registers, crown molding, chair rails, drapes, accessories, and other décor will cost you around $1,400.
- Bedroom Updates
- Installing wood flooring in a master bedroom will cost you around $1,500-$2,000, add paint and that will cost somewhere between $380-800. That means that these updates will cost you around $2,340.
- Living Room Updates-Walls and Floors
- A new mantel, wood floors, and paint will cost you around $3,000.
|Repair Item||Return Percentage (%)||Cost ($)|
|Minor Bathroom Remodel||102||10,500|
|Minor Kitchen Remodel||98.5||14,913|
|Attic Bedroom Conversion||93.5||39,188|
|Major Bathroom Remodel||93.2||26,000|
|Major Kitchen Remodel||91||43,000|
|Deck, Patio or Porch Addition||90.3||11,000|
|Family Room Addition||83||54,000|
|Bonus Room Updates||72.8||13,000|
|Living Room Updates-Décor||66||1,400|
|Living Room Updates-Walls and floors||40||3,000|
|Total for All Repairs||$291,547|
How To Pay for Your Renovations To Sell Your Home Fast
There are 11 different options when it comes to paying for home renovations. The first is cash. Cash is the easiest way to cover home improvement costs. It’ll keep you from touching the equity in your home, and you won’t have any future payments. But if you’re short on cash or would like to get a loan to pay for your renovations, there are 10 other options that can help you renovate your home.
- Refinancing Your Mortgage
- If you’re planning on refinancing your loan anyway, this is the best option for you.
- Home Equity Line of Credit (HELOC)
- This is a loan that is taken out of the equity of your house. It’s similar to a Home Equity Loan, but it acts like a credit card with a flexible interest rate. You’re approved to spend up to a certain amount of your equity, and you can spend as much or as little of that amount. You then pay back the loan like a credit card. The catch is that the interest rate is flexible. If you think interest rates are going to go down in the future, this might be a good option for you.
- Home Equity Loan (HEL)
- A Home Equity Loan is a loan for a set amount with a fixed interest rate. In contrast to a HELOC, you take all the loan out at one time, and the interest is fixed. This is also a great option if interest rates are low.
- Construction Loan
- Construction Loans are used for large renovations or to build a house. If you need more than the equity of your house, then this is an option for you. The only issue is that these loans aren’t easy to come by and there are many requirements that come with them. For example, the money can only be acquired when certain stages of the renovation or construction are complete.
- Credit Cards
- This can be a good option for small renovations. You might not be able to pay contractors with a credit card, but you can tell your contractor that you want to pay for materials with your credit card.
- Borrow from Your 401K
- For this type of loan, you’ll have to pay back the loan over five years, and the payments for the loan will be taken out of your paycheck. The catch with this loan is that if you quit your job, the balance will be due immediately.
- Federal Housing Administration (FHA) Limited 203(k) Loan
- Limited 203(k) loans allow homebuyers or homeowners to finance up to $35,000 into their mortgage. Limited 203(k) loans can be a terrific way to prepare your home to be sold if you’re looking for a long-term loan with a relatively low-interest
- FHA Title 1 Loan
- Title 1 loans can loan up to $25,000, and the terms can be up to 20 years. This loan doesn’t require equity in a house. These loans do take time to get and come with a lot of paperwork. Just make sure that you aren’t paying for repairs long after they need to be replaced.
- Reverse Mortgage
- If you’re 62 or older, you can get a reverse mortgage. These loans are great for people that are looking to retire in their home. If you have a large sum of equity in your house or own your home, you can basically sell equity back to the bank in exchange for cash. The best part of this loan is that you aren’t required to pay back the loan until the home is sold or you move. But if you’re looking to sell your home this isn’t a great option.
- Contractor Financing
- Your contractor may have relationships with certain financiers and can possibly make an arrangement to finance your project, but generally, you can get better financing on your own.
Some of these options might sound viable to you, but keep in mind that if a renovation is not needed, then it’s better to keep your equity.
No Renovations Needed To Sell Your House Fast
Sell with a Real Estate Investor
The quickest and easiest way to deal with your renovation issues is to not deal with them at all. If you’re looking to sell your house fast, then I would suggest selling your house with a real estate investor. The only problem with this, all real estate investors are not equal. A small company or an inexperienced real estate investor can leave you in a last-minute jam. The reason is that some companies will give out empty promises of purchasing your house, but in reality, they don’t have funds to back up their promises. If an investor or small company decides that they cannot afford to buy your house, you’ll be left with no buyer and possibly months of extra mortgage payments.
Sell a Property In Need Of Repairs To A Reliable Company
With all the options we've listed above, the decision process of what you’ll want to do can be overwhelming. If renovations are important to you and your willing to keep your house on the market until you sell, then everything we told you earlier are great options!
What if you need to sell your home fast? You don’t want to deal with any renovations but work with a company which is high reputable? We have a solution fast and easy for you then!
If you want to get rid of all the risk and just sell your home fast, then you need to turn to a larger, more reliable real estate investment company. Express Homebuyers has purchased more than 2,500 houses since 2003 and has an A+ better business bureau rating. Give us a call at (877) 804-5252. We can give you an offer in less than 7 minutes and schedule a time to come see your house.
Here’s what our simple 3 step process looks like:
- We quote you a fair offer over the phone in just minutes!
- We visit your home to confirm the details of your home
- Confirm the paperwork and you chose your settlement date!
These are all viable options to get your house sold, but some are faster and less risky. Make sure to use the option that works best for your situation.
Cash in Hand Fast!
It gets even better! When you sell your home to Express Homebuyers, you get cash in your hand as soon as you sell your home! No waiting on bank approvals, lengthy appraisals, or home inspections. You sell your home as-is for cash, giving you the ability to spend it how you see fit!