FOX31 Denver

Home out of Range: Should I remodel or sell?

DENVER (KDVR) — Denver’s real estate boom continues to strengthen, much to the delight of sellers who are seeing bids well above asking price on a regular basis.

Some would rather avoid jumping into the fierce competition to secure the perfect dream home.

Remodeling may be the answer whether a homeowner is looking to eventually sell or just stay in their home for years to come.

If you are planning to sell your home but it needs an upgrade, remodeling can increase property value. Real estate expert Luca Baud of Madison and Company Properties said giving your home an updated look is important before putting it on the market.

“Simple vanities where you can go to Lowe’s or Home Depot and just by updating those vanities you can increase the value and also the appeal to buyers,” he said.

Erica Sittloh said special features like large windows, an updated kitchen and enclosed patio with new built-in grill sold her and her husband on their new home after an exhausting search.

“Altogether, I  think we looked at about 15 houses and we put offers in on four,” said Sittloh.

Spaces Real Estate owner Grant Muller said some clients are deciding to wait out the real estate boom until their dream home becomes available.

“I’ve seen a lot of people just decide you know what, we’re just going to stay where we are we love the location we’re going to do a full renovation of the house,” shared Muller.

Real estate experts said it’s important to crunch the numbers and decide how much to spend on the project based on your budget and the valuation of homes in your neighborhood. If you eventually decide to sell your home, your investment will pay off, especially if it’s listed for under $500,000.

“The ones that are freshly remodeled, all of those are getting the really big bids sometimes two or 300,000 over asking price,” shared Muller.

Baud said it is important to keep one thing in mind when considering those bids.

“I always tell my clients the highest isn’t always the best,  because you want to do your due diligence, make sure the one you do accept is actually going to get to the closing table,” he said.

New mom and real estate expert Monica Perez of Your Castle Real Estate said the decision to sell or remodel should also be based on how it will impact your family. Homeowners should ask, “Do we need to move because we need more space, do we need to move to a different school district, is the timing right for us personally?”

The average remodeling job can run about $60 per square foot.

Make sure to check licensing and references before hiring any contractor.