To Remodel or Not to Remodel Your Home Before Selling It

San Francisco Real Estate Podcast with Durwin Cheung

Ideally, you should only remodel your home before listing it if you have the budget and time frame. However, there are also certain situations where you’re better off not updating it.

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Should you remodel your home before selling it?
Unfortunately, there is no hard and fast rule to answer that question. If you have the time and the budget, though, I say go for it. Typically, the more money you put into a remodel project, the more money you get back when you sell your house.
Bathrooms and kitchens are the two most important rooms to focus on for remodeling because they only take a month or so to upgrade and they generate the biggest return on investment. In San Francisco especially, they can generate a return of almost 200%. That means if you invested $10,000 in either area, you would get back $20,000 or $30,000 easily.

You should also consider investing in an outdoor living space. If you have a backyard, you could add a deck or build some decking material. I’ve seen this addition generate a return as high as 300% and even 400%.

Make sure you have the budget and time frame before remodeling your home.

Lastly, consider painting as part of your remodeling. You can improve your curb appeal by painting the exterior of your home. On the inside, people love colors that are warm and neutral. It will likely cost you a couple thousand dollars, but you get so much more in return. We’re already into the selling season, so if you could remodel your home now and put it on the market in May, that would be fantastic.
Is there ever a situation where you shouldn’t remodel your home, even if you have the budget? Yes.
If your home is in terrible shape or it’s a fixer-upper and you’re in the type of market where people are looking for fixer-uppers to buy, don’t bother. If you were to try to renovate the place on your own, it may take as long as an entire year. By that time, the market might shift on you. Like I said, we’re in a seller’s market, so you want to put your home on the market now instead of waiting a year and seeing what happens.
If you have any questions about this topic or are looking to buy or sell a home in our market, don’t hesitate to send me an email or give me a call. I’d be happy to assist you.