If you want to sell your underwater home, you might want to hold off on any renovation plans even if you are concerned about raising its value to make up for the mortgage. While renovating the kitchen or bathroom may not be a bad thing, it means more expense so one must extensively look at all angles before making such a risky decision. We've got some advice from Zillow.
First, one must take a closer look at what the home is really worth in the current market. Then the value should be matched up against the cost to renovate so the owner can really come up with a sound estimate of what the underwater home will be worth after spending on improvements. Improvements can make it seem like the home has increased its value but given that money was spent. If improvements are really necessary, the focus should be on the areas of the home that needs to be fixed such as dealing with chipped paints or replacing bathroom or kitchen fixtures.
The next factor to consider is the market. If your home is situated in an area where market prices are so low that even if renovating your home to home value by 20 percent won't make any impact then it is best to sell your home as is. On the other hand, if you're underwater home is situated in a market where buyers have high standards for home structure then renovating may be a good move.
Lastly, check if you are financially capable to do renovations. It is very unwise to take out a loan to pay for the works on your home, especially if the home itself is already sitting on debt. If it would only hurt your pocket more to assume more debt for renovations then the renovations will not really be worth it.
