Renovating a California home before selling it on the traditional market may seem like a good idea, but there are several hidden costs that homeowners should consider. The cost to remodel a house can add up quickly and be unpredictable, ultimately reducing the homeowner’s net profit from the sale of the home and taking a lot of time in the process.
In this blog post, we will reveal the various hidden costs of renovating a home before a California house sale and how Osborne Homes can save you lots of time and money. To begin, let’s discuss the reason people renovate their homes before selling on the traditional market, in the first place.
Why Do People Renovate their California Home Before Selling it?
Many homeowners believe that renovating their home before selling it on the traditional market will help them increase their sale price and sell it faster. They may also feel that renovating could help them update their home and make it more attractive to potential buyers. While they are correct that renovating does have value in some ways, not all renovations provide a return on investment (ROI) and some may end up costing more than the increase in sale price.
And what happens when you need to sell your California home fast and you don’t have the time or money it takes to make the renovations happen? You can list the house as-is and see if you get any bites, but chances are you are going to have to wait a long time before a buyer takes any interest – time you don’t have. Is there a solution to this problem? There is: You can sell your home to Osborne Homes.
Save Yourself Time and Money and Sell to Osborne Homes
Here at Osborne, we talk to California sellers every day who don’t have the time or money to get their home sold the traditional way and our service is the perfect solution for them every time. We buy homes in any condition, we pay all cash and we close FAST. Fill out this form and let us know what you have to sell.
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Here Are the 10 Hidden Costs of Renovating a House
Maybe you’re still considering renovating your home before your California house sale on the traditional market and if so there are several hidden costs that you should know about. These costs can add up quickly and be unpredictable, ultimately reducing your net profit from the sale of your home. Here are the ten hidden costs to consider before renovating:
- Material Costs
The cost of materials needed for the renovation, such as flooring, paint and fixtures, can add up quickly and be unpredictable. It’s important for homeowners to consider the cost of materials before starting a renovation project and to have a plan for staying within their budget.
Sell to Osborne Homes and eliminate the need for costly materials.
- Labor Costs
Hiring contractors, subcontractors and other professionals can also be costly and vary based on the scope of the project and the location of the California home. Homeowners should research the cost of labor in their area and get multiple quotes from professionals to ensure they are getting a fair price.
Sell to Osborne Homes and eliminate the need for spendy labor costs.
- Permits and Inspection Fees
Obtaining permits and paying for inspections can be unexpected costs that add up quickly. Homeowners should research the permit requirements in their area and factor in the cost of permits and inspections when budgeting for their renovation.
Sell to Osborne Homes and eliminate the need for inspection fees.
- Design and Architectural Fees
Hiring a designer or architect to plan the renovation can also be expensive and vary based on the complexity of the project and the experience of the professional. California homeowners should research the cost of design and architectural services in their area and get multiple quotes from professionals to ensure they are getting a fair price.
Sell to Osborne Homes and eliminate the expense of hiring a designer or architect.
- Delayed Timeline
Delays in the renovation process can lead to additional costs, such as mortgage payments, utilities and taxes while the home is being renovated. Homeowners should consider the potential timeline of their renovation project and factor in these additional costs when budgeting for their renovation.
Sell to Osborne Homes and avoid all delays – close QUICK.
- Staging and Styling
Usually, a California real estate agent will offer staging and photography but when the home is large or in need of extensive staging, things like furniture rental and decor can be a substantial cost. Homeowners should research the cost of staging and styling services in their area and consider whether it’s necessary for their specific property.
Sell to Osborne Homes and eliminate the need for staging and styling.
- Marketing Costs
If selling on your own without a real estate agent, you’ll need to market the home yourself. This will include a cost for professional photography and advertising which can add up quickly, especially if the home is listed on multiple platforms. Homeowners should research the cost of marketing services in their area and consider which platforms will provide the most value for their specific property.
Sell to Osborne Homes and eliminate the need for marketing services.
- Realtor Commission
While not a renovation cost, paying a realtor commission is very much part of the cost of selling a California home on the traditional market; and it can be a substantial cost, typically ranging from 5% to 6% of the sale price. Homeowners should factor in the cost of realtor commissions when considering their net profit from the sale of the home.
Sell to Osborne Homes and eliminate the need for paying a realtor’s commission.
- Unforeseen Issues
Unforeseen issues, such as hidden damage or unexpected problems that arise during the renovation process, can also be significant and difficult to predict. Homeowners should consider setting aside a contingency fund to cover any unexpected costs that may arise during the renovation process.
Sell to Osborne Homes and eliminate the risk of unforeseen issues.
- Lost Opportunity Cost
The cost of lost opportunity, such as the potential income from renting out the California home or the potential income from investing the renovation funds elsewhere, can also be significant if the renovation does not result in a substantial increase in the sale price. Homeowners should consider the potential ROI of their renovation project and whether it’s worth the investment.
Sell to Osborne Homes and avoid the cost of a lost opportunity.
But What is the Actual Cost of These Renovations?
It’s hard to put a number on any one of these hidden costs, because, as you can imagine, each situation is very unique. However, to give you an idea of the remodeling cost per square foot, here is a list of the average costs to renovate a home in Los Angeles, California, as reported by a group of contractors at Sweeten:
| Full Home Renovation: | $100-$400+ per square foot (psf) |
| Budget Kitchen Remodel: | $135 psf (based on 200 sq-ft kitchen) |
| Mid-Grade Kitchen Remodel | $50,000 average |
| High-End Kitchen Remodel | Starting at $100,000 |
| Budget Bathroom Remodel | $15,000-$25,000 (based on 35 sq-ft space) |
| Mid-Grade Bathroom Remodel | $26,000-$38,000 (based on 35 sq-ft space) |
| High-End Bathroom Remodel | Starting at $55,000 |
| Mid-Grade Master Suite Addition | $503 psf |
| High-End Master Suite Addition | $606 psf |
| Accessory Dwelling Unit (ADU) | Starting at $50,000 |
Avoid Every One of These Home Renovation Costs by Selling to Osborne Homes!
The cost to remodel a house before selling it sometimes isn’t even worth the hassle. Osborne Homes buys homes for cash and in any condition, eliminating the need for costly renovations and allowing homeowners to sell their home quickly and easily.
Common Misconceptions About a Cash Home Buyer Like Osborne
There are several common misconceptions that home sellers may have about selling to a cash home investor like Osborne Homes. For example, some may believe that they will not get a fair price for their home or even that they will be scammed. However, these misconceptions are often unfounded. Osborne Homes is known for giving a fair market price for the homes we buy. Plus, we have plenty of testimonials to prove our trustworthiness.
Osborne Homes is a trusted cash home buyer in California that provides homeowners with quick and easy home-selling solutions. Homeowners can receive a fair price for their home while avoiding home renovation costs.
Choose Osborne Homes to Save Money and Avoid Hidden Costs When Selling Your California Home
The cost of renovation before your California house sale on the traditional market can be an expensive and time-consuming process. Home sellers may encounter unexpected costs related to materials, labor, permits, inspections and more. By choosing Osborne Homes as an alternative, California home sellers can avoid these hidden costs and save money and time in the process.
At Osborne Homes, we pride ourselves on being the number one cash home buyer in California. We buy homes in any condition and close fast, offering a hassle-free and convenient experience for home sellers. Contact us today to learn more about how we can help you avoid hidden costs and sell your home quickly and easily.
