Wondering how to renovate for profit? If you’re thinking about selling, you can easily increase the value of your home by giving it a revamp. This doesn’t mean you need to spend a fortune. Simply focusing on the areas that need small touch ups can be much more cost effective, and leaves buyers with the flexibility to style or renovate the way they’d like.
So, should you renovate before selling? Here are some tips to help you understand how to renovate for profit:
Compare similar properties in your area
It’s a good idea to take a look at nearby properties for sale, which could be considered competition. A buyer’s final decision could come down to a competing property with a brand new kitchen or painted facade. Also, by looking at properties that have recently sold, you can discover common features that are helping these properties sell for a higher price.
It’s also crucial to talk to a real estate agent as they’ll have an insider’s view of why some properties have sold for more than others, and what’s driving those sales.
Pick the right spaces to touch up
If you’re in a newer property, you might only need to do update a couple of features to prepare for selling. However, if you’re in a property that needs a little bit more work, here are some common renovation ideas you can consider:
1. Exterior – Updating the front facade, verandah, landscape and outdoor entertainment areas
2. Kitchen – Installing a new sink, benches, cupboard or cabinet doors and handles as well as upgraded appliances
3. Bathrooms – Modernising the sink, cabinetry and shower
4. Painting – Using neutral, light tones to make space appear larger
5. Floors – Sanding and polishing floorboards or installing new carpet or tiling
The biggest risk in renovating prior to selling is over-capitalising. Of course, it’s possible to make a large profit as a result of extensive renovations. But remember, many buyers will look at the basic structure of your property, not added features that reflect your personal style.
For example, you don’t want to set yourself back tens of thousands of dollars by painting the walls in bright colours that the new owners end up painting over, or installing extravagant carpet that buyers don’t find attractive. It’s a good idea to stay simple and fresh when renovating for profit.
The best place to start is talking to a local real estate agent, who’ll know what buyers in your local area are looking for in a property. A good agent will be able to give you an accurate property appraisal, and estimate the likely profit you’ll make on your renovation. You can compare real estate agents at LocalAgentFinder.com.au, including sales history, commissions, marketing fees, homeowner reviews and more.