The return on investment (ROI) for selling a home that has been brought up to today’s standards compared to selling it “as-is” can be significant. Modernized and updated homes tend to be more attractive to potential buyers and can command higher prices.
The exact difference in ROI will depend on a variety of factors, including the specific upgrades made to the home, the local real estate market, and the overall condition of the property. However, in general, homes that have been updated and modernized tend to sell faster and for higher prices than homes that are outdated and in need of significant repairs.
For example, a study by the National Association of Realtors in 2021 found that home sellers who made improvements such as kitchen and bathroom updates, new flooring, and interior and exterior painting saw a median ROI of 67%, while those who made more extensive renovations such as a kitchen remodel or a room addition, saw a median ROI of 62%.
On the other hand, homes that are sold “as-is” may appeal to a smaller pool of buyers who are willing to take on the necessary repairs and updates themselves. As a result, these homes may sit on the market for longer and may ultimately sell for lower prices.
In summary, investing in updates and modernization of a home before selling it can result in a higher ROI, as these homes are more attractive to potential buyers and can command higher prices. Conversely, selling a home “as-is” may result in a lower ROI due to the smaller pool of potential buyers and the need for repairs and updates.
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