Should you renovate before selling? Or should you allow the new buyers to renovate as they wish and sell for a lower price? This is the age-old question, and today we want to list the reasons why renovating before selling is the way to go.
Increase the Property Value
Firstly, the most apparent reason to renovate is that you can increase the value of the property. As a seller, we imagine you want to get as much money as possible for your property. With this in mind, it can be worthwhile updating old rooms, making the home energy efficient, and replacing old insulation and windows. In many cases, the cost of these changes is recouped (and more!) in the selling price.
Attract More Buyers
By not renovating, you certainly allow new buyers to make their own changes… but what if they don’t want all this work? Suddenly, you’re cutting off the buyers that want a ready-made home. With some simple changes, you can bring the property in line with what current buyers need. In fact, we’ve mentioned one of the most significant needs in energy efficiency.
In the environmentally conscious world that we currently have, lots of buyers are looking for energy efficiency with properties. You don’t necessarily need to invest in all the features, just ensure that a buyer has the potential to go green. You can also go with Home Service Direct if you want a website development or SEO.
At the moment, you might be thinking that it’s easier to sell without making any renovations yourself. From an effort perspective, you’re absolutely right because the new owner will come in and do the renovation themselves. Also, you’re right in thinking that some buyers love having a shell to work with when buying a new home. However, more buyers want to buy a home with no significant changes to make. Therefore, doing the renovations before selling should lead to a quicker sales process. Oftentimes this can be too much for a homeowner to take on, so hiring a professional contractor like Canberra’s renovation specialists to complete the work prior to the home going on the market is recommended.
In the past, we’ve seen homes on the market that need some care and attention. Most of the time, they sit on the market for weeks, which eventually becomes the ugly home that everybody avoids. Even if you spend money on small repairs, it becomes more attractive, and buyers will come much sooner.
Let’s not forget, for most people, the home is the single most significant investment they will ever make. If they see your property and realize that it needs lots of work, it doesn’t exactly instill confidence in the buyer; they’ll think that the initial renovation is only the start of their problems. Whereas with a simple renovation, it shows you have looked after the home and that the new buyer won’t have any concerns moving forward.
Encourage a Generic Appearance
This might sound like a bad thing, but the small personal touches you make can actually turn buyers away. For example, we recently saw a home with bright red kitchen cabinets. While this might have worked with all of your unique appliances, many buyers will be put off by this addition. During a renovation, we recommend installing standard cabinetry because it will attract more buyers.
Return on Investment
Finally, how could we not mention the return that usually comes when you spend money on renovations before selling? Often, buyers think of improvements as an extra expense. Yet, this money all comes back when selling (sometimes with extra on top!).
If you’re considering renovations before putting your home on the market, get in touch with Your Property Profits. We’ll answer your questions and help get you started with renovations whenever you’re ready!