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Preparing for Sale: Are Home Improvement Loans Worth It? 

Preparing for Sale: Are Home Improvement Loans Worth It?

Did you know that in 2020, US homeowners spent a whopping $420 billion on home improvements? A good chunk of all that expenditure, in turn, went toward D-I-Y projects.

Interestingly, some homeowners opted for home improvement loans to fund such projects. For instance, a survey found that 25% of homeowners who took out a personal loan used it to improve their homes.

So, does that mean you should also take out a personal loan to improve your home before selling it?

Below we’ll discuss when and why that makes sense, so be sure to read on.

Can Help Free Your Home of Major Defects

If you want to sell your house for top dollar, you need to know what it’s worth in its current condition. That way, you’ll have an idea of the repairs you can do to jack up its value.

An excellent example of a problem you should fix is improper surface grading or drainage. This issue, which a survey revealed is in one in three US homes, requires immediate repairs. After all, it can result in more severe and expensive water damage if left unresolved.

However, regrading a lawn can already cost $500 to $3,000, depending on the size of the land around a house. So, the bigger your yard, the costlier it will be to regrade.

If you don’t have that kind of money, you might want to consider taking out a home improvement loan. You can then use the funds to fix the problems affecting your home’s value.

Fund the Repairs of Dangerous Electrical Problems

Malfunctioning electrical systems are also among the most common housing problems. Worse, they can result in severe electrical burns and shock injuries. Such hazards even land around 10,000 people in US emergency departments every year.

As such, it’s best to get an old or faulty electrical system repaired before selling a home. Otherwise, you can expect potential buyers to demand a price reduction or even back off from the sale. Besides, you don’t want to put your family or theirs at risk of such dangers, do you?

At the same time, you need to prepare hundreds, even thousands of dollars for the repairs. For instance, rewiring a 2,000-square-foot house can result in a bill ranging from $4,000 to $8,000.

So, if you can’t shell out that kind of money, think about getting a home improvement loan. Doing so can get you the funds you need to rid your home of electrical hazards before its sale.

Finance Small Projects That Improve Curb Appeal

A new house number, a shiny mailbox, and a fresh coat of exterior paint can all help boost your home’s curb appeal. After all, these are things that potential buyers first see when they visit your home for a viewing.

Fortunately, those projects are some of your lowest-cost home improvement ideas. However, their total cost can reach a few hundred dollars, which may still be out of your budget.

In that case, consider applying for a small home improvement loan. Many lenders offer loan amounts as low as $1,000, which you can often pay back in increments of three to six months.

Home Improvement Loans Can Help Prep Your House for Sale

Keep in mind that homes for sale can sit for longer than 40 days on the market. However, those that need repairs often take longer, as they aren’t ready for occupancy. Even if bought, it’s usually at a lower price.

So, to get the most out of your property, consider applying for home improvement loans. That way, you can fund projects that can help boost its value.

Are you interested in even more home-related guides like this? Then feel free to check out our recent blog posts!

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