Should I renovate before selling?18 October 2020
When looking to book a real estate agent to sell one's property, it's a big decision that shouldn't be taken lightly. Selling a home isn't a decision that should be made overnight, and especially with older properties, many owners will consider the question, should I be completing renovations before selling? Let's examine that question in more detail throughout this article.
It's only business
As per the famous Godfather quote, "It's not personal, it's strictly business", this is the primary consideration that you should keep in mind. If you put in a new bathroom, for example, you won't get to enjoy the lovely new marble, since you're planning to sell. The only reason to renovate at this time in your property's life cycle is to increase the value of the home, through the increasing of interest from potential buyers. So if you want to renovate for your own satisfaction, then rethinking this may be something to do.
Consider the market
It's important to look at your demographic and through that, consider their expectations. This is because real estate sales are all about the buyers, and who they are in general. If your home is in a suburb where having an older bathroom is fine, then upgrading that shouldn't be a priority. Conversely, if you are looking to sell to a demographic that is going to expect a newer, modern bathroom with all the relevant fittings, then by not completing that renovation, you are likely turning away a huge percentage of your market. By thinking in this way, it helps you to make dispassionate decisions regarding potential renovations.
Avoid putting in too much cash
Renovations are not cheap endeavours. Whilst they have the potential to add huge value to your home that you are looking to sell, they can equally not add that much. Spending $100,000 on a new kitchen, bathroom and roller shutters, only to find a $20,000 increase to the home's value would be disastrous. On this basis, avoid putting in too much money into renovations, especially those that aren't going to add pure dollar value to your home's value. An easy example of something that should always improve value is a refreshing door and light fittings, since it can be perceived by potential buyers as the property being more modern. An example of something that may or may not add value is a new bathroom, assuming yours is in decent condition, since value there is subjective.
The main takeaway from this article for you, should be to always treat renovations before selling as a business decision. Avoid renovating for yourself, consider the market carefully, and avoid putting in too much finance. If you have any questions or are planning to sell, be sure to get in touch with House Estate Agents today, at 07 4580 0811 or firstname.lastname@example.org.