It always starts with just some ‘light improvements’… then before you know it it’s 11pm and you’re sitting on the bathroom floor pulling tiles off the wall. Renovations can have a really amazing return but it’s key to know to what your home needs and if it’s going to be worth it.
We’ve put together some points to consider to get the most out of your renovation when your home hits the market. So if you’re tossing up on whether or not a reno is right for your home be sure to give this a read first.
Who are you renovating for?
If this isn’t your forever home then you need to think of who might fall in love with it next. When renovating to sell the first step is understanding what buyers are looking for. Yes, you may have always wanted a red tiled splash back in your kitchen but renovating doesn’t necessarily mean it’s time to bring your dreams to life – it’s about the buyers.
Your home’s sale price will increase in value if your buyers see the additions as valuable. Consider working with an agent who understands your target buyers and can guide you with what aspects buyers appreciate and pay more for, so you know you’re putting your money in the right areas to increase your homes potential.
What is best for your home?
Before renovating to sell consider what your home needs to look its best – sometimes small touch ups can make all the difference. Fixing up the simple and small details you’ve been meaning to get to is a cost effective way to bring up your home’s value in buyers’ eyes. Chipped wall paint, leaking taps or squeaky cupboard doors are all details your buyers notice.
These little touch ups won’t have the same increase in sale price as some major renovations, but they also don’t take near the same amount of effort. Start with steam cleaning the carpets, a fresh coat of paint or even swapping out the daggy old blinds for something a bit more on trend – simple yet effective ways to give your home a face lift.
Where can you add value?
You need to look at renovating to sell like a business decision. Is it actually going to add value? Yes, the house may sell for more, but if you’ve spent 100k in refurbishing the kitchen and bathrooms, you need to make sure you’re getting a return for your investment.
As a rule of thumb you should be aiming to make $2 for every $1 spent so you need to know the decisions you’re making have significant value gain. Agents can show you which homes in your suburb are selling for your dream price and how they compare to your home – and guide you on which areas of your home might be due for a fix-up.
Know your suburbs potential
After the late nights, countless tradie bills and an *almost* divorce, the last thing you want is to have overcapitalised. The market is hot right now but there are still price ceilings.
Do some research in your suburb to see what other homes are currently selling for and their comparison to yours – if there are price ceilings in your suburb it’s best to know what these are and where your property already sits. Before undertaking a reno, getting an agent in for an appraisal can help guide where your home is in the market and what else could be done to maximise its sale potential.
Getting an agent involved early can be the secret weapon to nailing your renovation. Being in the heart of the buying process, agents get to hear all about the different colours, features and fixtures buyers are looking for in their dream homes. Having an agent assisting you through this process of renovating to sell can be an untapped resource to help you get the upper hand with your renovation vision.