Unlike wine, houses don’t age well. At some point, it will need more than regular maintenance. It will require an overhaul.
The question is, when is the best time to do your renovations? Here are some things to consider:
What Time of Year Is It?
Home renovations can depend on the season. The best time to do it is around spring and early to mid-summer. It will give the newly renovated space a chance to get exposed before people start thinking about buying new homes for themselves or their families. Around this time, school is on a break, and people are on holiday. They have more time to look for new properties.
Keep in mind, however, that renovations that involve anything more than replacing a light bulb or changing a plug need tradespeople who have specialized skills. This means that you will have to deal with various contractors for most renovations, especially those involving flooring or painting.
Contractors are often busy during the spring and summer. If you book projects with them late, you could end up spending a lot to cover possible premium costs. Schedule the renovation at least six months to a year in advance.
The nature of work to be done can also affect when you should do your renovation. For instance, winter will be the best time if you only need a few holes drilled in walls for hanging TVs or mirrors. During this time, walls are cold, and drilling through them is not as challenging as in warm months when concrete softens easily under high temperatures.
Are You Planning to Sell the House?
Even if the housing market favors the sellers, many home buyers are still picky with properties. That’s understandable since everyone wants to get their money’s worth, and no one wants to deal with buyer’s remorse.
One of the best times to renovate a house is when you’re ready to sell it. When renovating the house properly, like focusing on areas and projects that provide the highest returns on investment (ROI), you could recoup over 50 percent of your expenses.
When you’re planning to sell the house, your target market also matters. Older folks often want smaller houses but more amenities. Younger ones may prefer larger spaces or simpler amenities. It also matters if your community needs more young families or if it is mostly retired and empty nesters moving in and out.
What Is Your Current Financial Situation?
Home renovations can cost a lot, so you want to make sure you have enough money to spend. According to HomeAdvisor, the average home renovation cost falls between $18,000 and $76,000. The more complex it is (e.g., contractors have to fix structural issues or completely change the bathroom, kitchen, or both), the more expensive it gets.
You can use your mortgage to finance it. You can refinance your property, so you can also take advantage of a much lower interest rate, or you can apply for a home renovation loan.
However, if you want to spend less on this debt, raise some funds as well. If you can, spend at least 20 percent of the cost. This also helps speed up a lender’s approval.
Where Are You Located?
Location can also be a factor in your decision when to do a home renovation. For example, in coastal California or New York City, where there is a lot of competition and high prices, you’ll have to renovate less to convince people to buy your house. But if your home is located in a state with cheaper real estate and roomier spaces (like Wisconsin), you’ll need to do more renovations to sell your property.
What nearby amenities matter to you? Think about what kinds of things would make people want to buy or rent your house, like schools, parks, public transit, gyms, and shopping. If you’re surrounded by chain restaurants, a $500k home might not look so appealing if it’s next door to McDonald’s.
But if local shops and indie coffee joints are all over, the same house will seem more desirable even without renovations. It all depends on the target market and what the group considers as vital and appealing.
Either way, knowing where you are and what’s happening in the neighborhood is vital because you can’t control location. You can control how you create a space that complements the surroundings and makes your future buyers feel like they belong.
Like in any decision, time is everything when it comes to home renovations. Do it when it’s necessary; you can get hold of funds, and you want to maximize the value of your house in the market.
