If you’re selling your home this year, then you have a great opportunity to maximize your returns when you sell. One great way to do this and add to your property’s value is by doing renovations prior to selling your home (we call these “presale” renovations).
The number one reason most people don’t renovate their home prior to selling is, you guessed it, cost. Your bank account may be stretched thin with the finances involved in selling one home and buying another. It’s a difficult and frustrating position to be in. When you do renovations, you can make approximately 25% more on the sale of your home. You don’t want to pass up that kind of opportunity and you don’t have to.
Let’s consider all of your options:
- Sell As-Is: Selling as-is means you won’t be doing any renovations before selling and you’ll have to lower your listing price as a result. From there, buyers will potentially try to negotiate your price down even lower. Many times, unrenovated homes take longer to sell. Buyers often want something they won’t have to fix up before moving in and something they can see themselves living in when they walk through an open house.
If you don’t want to miss out on maximizing your property’s value, there are a few other options:
- Traditional Financing – There are a few options to finance your renovations. You can use these options and pay them off after closing.
- ZingFix (Renovation Professionals) – We can often give you the highest return on your investment because we work with the same contractors on a consistent basis. Our contractors give us discounted rates because we give them so much business. Then we pass that savings onto you (the seller).
We offer occasional funding on a case by case basis or through a third party, specifically made for pre-sale renovations. One of the options we offer is a 12-month low or no interest financing option with flexibility for the amount of the loan. After 12 months, that loan would convert into a normal interest rate loan. The good news is that after your home is renovated, you should have no problem selling very quickly and for more money. If you are interested in chatting with us, we’d be happy to give you a virtual estimate. Just click here to set it up. - Second Mortgage – Much like your first mortgage, getting a second mortgage would allow you to borrow a fixed amount of cash for a fixed interest rate. A second mortgage generally has an average interest rate of 3%. It gives you the opportunity to renovate your property, but would cost more than a loan with Zingfix (and it would definitely be more stressful). Choosing this option would usually include all of the headaches that come with project management, requiring the hiring and management of multiple contractors, all while dealing with the stress of selling your home too.
- HELOC (Home Equity Line of Credit) – A HELOC is a type of revolving credit line secured by the equity in your home. You borrow what you need as you go, but the interest rate is variable throughout the process so rates can go up or down. The average interest rate for a HELOC is 5%+. The 5% or more is money being used for interest that could be going back into your pocket.
One final quick (yet less effective) option:
- Offer Credit At Closing – If a potential buyer wants repairs done or uncovers any issues during inspection, you can offer a credit to the buyer. That credit will allow them to make the repairs after closing. Many times, the credit amount requested by the buyer is more expensive than the repair cost would be. This can turn off potential buyers because they don’t want to deal with the hassle of fixing up a home they just bought.
Those are the most popular options if you are considering renovations and you want to sell your home. The most important thing is to carefully consider all of the options and decide what is the best for you and your family. The more research you do in advance, the better prepared you are.
If you’ve made up your mind and want to do renovations. We can get you a great deal, save you time and make you more money. Just contact us for more info. Fill out our “request an estimate” form by clicking the link below.