Have you considered renovating your home or investment property, and how much value you’ll get before selling it? You are not alone! Many homeowners renovate their homes before putting them on the market to get a better return on investment.
However, there are a few considerations if you intend to renovate for sale. In this post, we’ll introduce you to some of the most important questions to consider when renovating your home for sale.
INDEX
Is it worth renovating before selling?
What renovations should you make before listing your home for sale?
What are the dos and don’ts when renovating to sell?
The ‘Dos’
The Dont’s
What renovation adds the most value?
So, is it worth renovating before selling?
Is it worth renovating before selling?
Make sure your home will appeal to potential buyers before placing it on the market. This may mean making bigger changes like adding an extension and renovating indoor and outdoor spaces or small tidy-ups like painting the walls. Even though it might seem like a lot of work, taking the time to consider the presentation of your home to a potential purchaser can pay off in the end.
Often people ‘know’ they need to renovate or give their home a makeover before selling it. But what’s the reason for this? Sometimes we can bring our ideas of what we should do to a project without first checking the facts and understanding why people go down this process!
Well, there are a few good reasons for renovating before you sell:
- First, it can help to increase property value. Even small renovation and cosmetic changes can add value. If you’re planning on selling in a competitive market, every little bit helps. When you work out what the best renovation is for you, and undertake the one that creates the most profit, you will be unlocking the true value of your home.
- Secondly, it can make the property more attractive to potential buyers and increase foot traffic. A well-presented home is more appealing to some purchasers than one that needs a lot of work. By showing your home in its best light, you will ensure your home’s potential isn’t overlooked.
- Finally, renovating before you sell can help to speed up the sale process. If your home is in perfect condition, buyers won’t need to factor in the cost of repairs when making an offer.
However, doing work to your home may also not be the right move for you! There are many things to consider before committing to spending money, but you will need to ensure that you get a return on investment (ROI) for every dollar spent!
Things to consider will include the type of purchaser and their intent. If you are selling a home that is most likely to be purchased by a developer to knock down and rebuild one or more homes, then renovating or spending any money on refurbishing will be unfruitful as they are focused purely on the land value.
Make sure you assess your potential renovation and the potential profit you will make through our Project Profit Calculator!
What renovations should you make before listing your home for sale?
When it’s time to sell your home, you want the best return on investment possible. Of course, that doesn’t mean you have to spend a fortune on a renovation budget. For professional advice, you don’t need to hire an interior designer – if you have an estate agent that you can trust, we recommend you consult them. (Do be mindful of the advice you receive, understand any potential agendas, and always sense check it with what you see in the market!)
You may only need specific renovations that will make a big impact, focusing on the spaces that purchasers are invested in.
Here is there a list of the most important things to tackle before selling:
1. Fix Damaged Walls or Ceilings. This will include patching holes, repairing cracks, painting over stains, and checking all the windows and doors.
2. Update Floors. If your carpets or hardwood floors are damaged or scuffed, replacing them will make your home look more polished and inviting.
3. Refresh the Paint Job. A fresh coat of paint can brighten a space and make it feel cleaner and fresh for a whole house.
4. Clean the Windows. Sparkling windows let in lots of natural light and make a big difference in how a room looks and feels.
5. Declutter Every Room. A room can feel cramped and narrow if there is too much furniture. Removing unnecessary items will help create the illusion of more space. Getting this right is so important!
6. Highlight Each Room’s Best Features. This may mean rearranging furniture, adding some strategically-placed decor, or even renting out some additional furniture for showings only. You may wish to use a styling company to ensure that your home has the right decor! You are selling the “dream” when you sell a home, and creating an inviting space with furnishings is essential.
By making a few updates, you can help increase the purchase price of your home and make it more appealing to buyers. So before you list your property, take some time to consider which updates will give you the best resale value!
Whilst some homes will be suited to smaller updates, others will be suited to full-scale renovations, and by doing this work, you will be able to maximise your profit!
How do you know if your renovations will make you money? There is an art to it, but it will always come down to the numbers – how much you need to spend and how much of a return you will get from spending this money.
Our Project Profitability Calculator is a great tool for working out whether the work you are completing on a home will give you a return on investment or not! You can use this whether you already own the property or are looking to purchase to renovate for profit!
What are the dos and don’ts when renovating to sell?
So, you’re considering renovating your home before putting it on the market. And you have decided on if you will undertake a major overhaul or just some cosmetic updates to make sure that your property appeals to buyers and commands top dollar.
Here is a list of do’s and don’t to take into account before you begin:
The ‘Dos’
Focus on High-impact Areas First
If you are doing building work, you need to ensure you will get a return, and this means focusing on areas that are high impact! The kitchen and bathrooms are always a good place to start as they tend to be the busiest and most dated rooms in the house, gardens and landscaping can add great value too! Potential buyers will look at these key spaces closely, so ensure they’re in tip-top shape. When doing a significant overhaul or renovation for profit, you want to create a homely feeling that purchasers love and can picture themselves living in!
Update Appliances and Fixtures
Outdated or tarnished appliances and plumbing fixtures can turn off potential buyers. Replacing them with new, stylish items will give your home a fresh, modern look that buyers will love.
Ensure a Clean and Clutter-Free Home
This one should be a no-brainer, but you’d be surprised how many people try to sell their homes without first giving them a good deep cleaning. Clutter can also make your home seem smaller, so get rid of any unnecessary knick-knacks and pieces of furniture before buyers come knocking. And a sparkling home is an absolute must – no one wants to think about the people who lived in the house before them, so wipe down walls, dust everywhere, and clean like you have never cleaned before!
The Dont’s
Don’t Overdo It
It’s important to balance making needed updates and going overboard. Avoid overspending on your renovation to the point that you price yourself out of the market. Overcapitalising is a real risk, and striking the right balance for your home is important whether you are just starting her up or undertaking a significant overhaul.
Know your market and who you are selling to! If you are doing a high-end renovation, then make sure you spend appropriately on quality fixtures and finishes that your purchaser will touch and feel, but don’t overspend in areas that they will not value.
Don’t Skimp on Quality
Even with a tight budget, use high-quality materials that will last for years. The short-term price of an appliance or finish may seem cheaper, but over time you’ll replace them sooner. Buyers can also tell when corners have been cut, so it’s best to do things right first.
If you know what you’re doing, renovating your home before selling doesn’t have to be difficult – in fact, we wholeheartedly believe that it is FUN! Just remember to focus on key areas, update old fixtures, declutter, and avoid overspending – and you’ll surely attract serious buyers in no time!
What renovation adds the most value?
A home is a huge investment property, and many people put a lot of time and effort into ensuring it looks nice. But what adds value to a home? If you want to boost the value of your home, here are five home improvements that will add serious equity.
The Kitchen
A well-designed kitchen can make or break a sale, so a kitchen renovation is a great way to add value if you plan to sell your home shortly. Adding new countertops, cabinets, appliances, and flooring can make a big difference in how much your home is worth.
The Bathroom
Like the kitchen, bathrooms are often one of the first places prospective buyers look when touring a home. A luxurious bathroom can impress potential buyers, so it’s worth considering splurging on high-end fixtures and finishes if you plan to sell shortly.
Extra Living Space
If your home doesn’t have enough bedrooms or storage space, consider how you might remedy this. Do you need to add an extension or build in an underutilised space? Will it be worth solving this problem? Increasing floor area to add extra bedrooms or an ensuite can result in a significant uplift in value!
This is especially good if you live in an urban area where space is a premium. Buyers are always cautious about a lack of space and may have many varied uses for your home which they will add in their personal style through furniture and homewares. With this in mind, you want to both add enough detail that they will fall in love with your home and have enough of a blank canvas that they can see themselves living there!
Extra Bedroom
This can be particularly helpful if your home only has two or three bedrooms, as buyers are often looking for properties with more space. An extra bedroom can also be used as a home office or playroom, making your property even more appealing to young families.
Understanding the potential purchasers’ requirements is key here, and knowing who you will be appealing to and what they will value!
So, is it worth renovating before selling?
Your situation, the state of your home and what value your renovation will add to the end price of the home will be the determining factor in answering this question! However, if you’re looking to add value to your property before listing it on the market, some renovations tend to have a bigger impact than others.
Working out the value you create will be key to understanding if you are doing a touch-up or an all-in renovation will be most financially rewarding! You will also need to understand what resources in terms of time and money you have available to undertake this process!
Keep in mind that not all renovations are created equal – some can decrease the value of your home if done wrong. That’s why it’s important to seek an expert’s advice, someone who can help you navigate these murky waters and ensure the money you spend on renovation will be regained once the property gets sold.
Are you considering renovating before putting your house up for sale? Want to talk to us about renovating for profit? Book a call with us by clicking the button below.
