Do's and don'ts when renovating before a property sale
Fri October 21, 2016
For every Australian looking to sell their property, there is a strong desire to get as good a return on investment as possible. After all, a home is a significant purchase, and regardless of where you're looking to move next, it's always good to get as much as you possibly can from any sale. Homeowners in Sydney are of course quite fortunate in this regard, as the incredible growth of the city has meant that almost every area of the city has gone up in value.
This is certainly a great start in terms of making a tidy profit from your property, but for many Australians there is the potential for an even better payday, simply by making a few simple additions or renovations. While spending a bit of money on your home before it goes on the market is a great way to maximise your return, there are a few simple do's and don'ts that you should keep in mind before tearing down the walls and undergoing a major development. Let's take a closer look.
A well maintained, perfectly presented home is far more likely to steal buyer's hearts than one that looks tired.
Do: Make all repairs
It's simple psychology that a well maintained, perfectly presented home is far more likely to steal buyer's hearts than one that looks tired and run down. For this reason, the most important renovations to make are the small ones that may seem insignificant, but can actually play a massive part in presenting the property in its best light.
This could be a fresh lick of paint, new fixtures to replace the slightly rusted ones in the bathroom or even something like steam cleaning the carpet. While these renovations certainly aren't large in scale, the benefit when hosting open homes is truly critical.
Don't: Go big and bold
Every property owner looking to make a few pre-sale renovations should keep in mind that money in doesn't always equal money out. To put it simply, spending $25,000 on a brand new kitchen fit-out won't always equate to that same increase in value when you go to market.
The same goes for your decorations. While certain bold colours may work for you, it's usually better to keep things simple and neutral - creating a blank canvas for potential home buyers to envisage themselves in.
Do: Consider an extra bedroom
If you do decide to make a substantial change to the property, or perhaps are planning on selling in a couple of years, adding an extra bedroom is by far the best addition that you can make.
According to data from realestate.com.au, 25 per cent of Aussies would like their home to have an extra bedroom, so adding one to your property is a great way to achieve a higher price when you do go to market.
Don't: Spend too much
The phrase 'too much' obviously depends on your specific situation, as well as the length of time that you'll remain in the property before selling. If you think an addition will serve you and your family well and add value down the track, then it's certainly worth considering. On the other side of the coin though, it isn't always easy to determine what renovations are currently adding value.
One of the best ways to get around this is by organising a property appraisal. An expert pair of eyes will be able to identify any areas that may need a touch up, and an appraiser will also be able to tell you what nearby homes are being valued at, and which features are contributing to those prices. If you get this done early, you'll be able to make sure that when you do decide to list, your home stands out as a perfect example of what is on trend.
For more information on everything to do with selling your home, contact Laing+Simmons today.