A lot of people sell their properties without getting the right returns on investment probably because they leave renovations to the buyer which invariably reduces the value of such property. Once a decision is been made on the sale of a property, returns on investment should be top priority. To renovate or not to renovate? This is indeed the huge question that arises when words go out that a property is about to be put up for sale.
Pre-sale renovation becomes important due to the fact that it increases the desirability and value of a property and are sometimes necessary to put a property at par with comparable properties on the market in the same area. If planning to spend the time and funds on a makeover though, it is crucial to research and plan in order to get it right. Ensuring any changes appeal to a large percentage of prospective buyers, in addition to meeting the needs of the property’s target market, will help to make any work done a valuable undertaking.
Herewith, some fundamental (but often overlooked) rules to help determine whether renovating prior to sale will be a profitable activity or a wild goose hunt:
Don’t spend more than you can recuperate – It will be foolhardy to spend more than you can recuperate. Taking a stand on whether or not you should invest on renovations prior to putting your property up for sale and how much money should be sacrificed to promote the cause is a tricky decision. You may be tempted to spend too little albeit your efforts may look cheap and defeat the main objective of renovating in the first place. Spend too much and you may not recuperate your money when the property is finally sold. The general rule is to be thrift in spending.
Kitchen and bathrooms are the place to spend money – Kitchens and bathrooms are two areas of a house that tend to have the largest impact on sale prices, so it can pay to update these rooms prior to sale. Having said that, these types of renovations could appear to be costly. Regardless, it is essential to ensure both your bathroom and kitchen are in a functioning order and present well.
Factor in market conditions – It’s important to select an agent who has experience not only selling in your area, but more importantly, in your suburb. A knowledgeable agent should be able to give advise on comparable properties for sale in an area and indicate how worthwhile a renovation to your property would be. It makes good business sense to keep your property within an equivalent price range to others in the area, but with some stand out features.
Street appeal – Like they say; first impression counts. The appearance of the front of your house should speak volumes about the property and ranks high in order of importance when it comes to real estate. You should ensure you spend quality time cleaning the windows, clearing gutters painting where necessary and tending to the environment where there are leafy or bushy outgrowths in the vicinity. In summary, making your environment look good should be your first call. These minor alterations can have a significant impact to getting a good deal.
Judge taste – If you chose to renovate, remember you are doing it to make the property more attractive. Therefore, in order to appeal to the masses it’s best to stick to neutral colour schemes and clean lines.
Don’t necessarily go the whole distance – Sometimes a good clean up, a coat of paint and small adjustments here and there is all a property needs to attract more buyers. Again, making this decision comes down to analysing first whether or not you can recuperate what you spend.
When it comes to making the decision over whether or not to renovate, it is important to bear in mind that a renovation does not necessarily guarantee a profit. By doing some research and working closely with your real estate agent you can ensure the money you invest will be recouped come sales day.
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