At first, it may seem strange to consider renovating a house immediately before selling it as you won’t be able to enjoy both the hard work and expense gone into it.
However, there are plenty of reasons to consider it as a worthwhile investment, and renovation, in general, is quite popular lately – according to the Australian Bureau of Statistics, Australians spent over $1 billion a month on home renovations during 2021.
Let’s look at some of the prime considerations of renovating a house before putting it on the market.
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1. Renovating Increases The Market Price
Renovating your home or any property may increase its value. We suggest you have an experienced selling agent provide you a market update in the property’s current state and discuss with them the renovations being considered. In providing an opinion as to how much value the renovation itself can add will be dependent on a number of factors including quality of finish.
A renovation can take plenty of forms; it can be completely redoing the place or merely adding a fresh coat of paint. Regardless, the renovation’s value will reflect design elements, and the quality of appointments and finishes. Adding an extension or making general and cosmetic repairs are good ways to modernise your home and make it more attractive on the market. For example, if the bathroom requires a complete overhaul, this could cost $10,000 – but might increase the home’s value by more than this amount.
There are lots of things to consider, and this is where speaking with a property professional can help guide you in your decision making. You want to make some kind of profit given your expenditure, so ensuring you do not overspend is imperative. A renovation will only add so much value, and you will hit diminishing returns eventually. It is sometimes not going to add enough value to justify the renovation; figuring out where you dollar and efforts are best spent is in itself a process that requires plenty of consultation, and you cannot do significant remodelling if you are on a tight timetable.
2. Renovating And Maintenance Protects Your Sale Price
You should always ensure your property is in good order before you sell. Having a pre-sale pest and building inspection is a health check! Problems are able to be rectified and removed as a potential obstacle in price negotiations or a sale proceeding. If any issues identified are passing with the property, this is factored into the on-market price. The buyer is aware and not then able to re-negotiate an agreed to sale price.
3. Renovating Helps You Keep On Top Of Trends
Ultimately, people buying a house want something that ticks the right boxes, and this means you need to know what people are looking for in a property. Home design and interior trends are constantly changing, and the pandemic has had an influence on this. People now want more living space, so expanding your living room or adding a new bedroom may bring more potential buyers.
Similarly, architect Luigi Rosselli argued that many Australian renovations across 2021 were because people wanted a comfortable workspace at home; with plenty of people still working from home, you could add a lot of value by accommodating this. The housing market is just like any other: it changes, and your property’s worth will depend on market conditions and buyer requirements at that given place in time.
Again, over-capitalising for the benefit of selling is not beneficial. Speaking to one of the team at Percival Property will help you ascertain whether the potential to add value is worth pursuing. There are many factors considered by an agent to assist you make an informed decision including the calibre of work to be undertaken, your property’s location, its other attributes, as well as supporting sales of similar properties.
Renovating your home before selling could be a huge help and a good investment – if you choose the right renovation. The Percival Property team are always willing to assist you with advice as to what improvements may or may not benefit your future plans and help you prepare to get your home or investment prepared for sale, get in touch with us today.