Wondering how to renovate for profit? If you’re thinking about selling, you can easily increase the value of your home by giving it minor 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 will leave buyers with the flexibility to style or renovate the way they’d like.
So, should you renovate before selling? Here are some ideas to kick things off.
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 recently sold properties, 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 specifically is driving those sales. You can compare real estate agents using our online agent comparison tool.
Picking 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 is a little bit older that needs more work, here are some common renovation ideas you can consider:
1. Exterior touch ups
If you’re thinking about selling, many prospective buyers will do a drive-by before they decide to inspect your property. So, that’s why it’s important to touch up the exterior of your property. For example, the front facade, verandah or garden. An updated, functional outdoor entertainment area will likely increase buyer interest too.
2. Kitchen improvements
The state of your kitchen could make or break the success of your home sale. Kitchen renovation ideas could include installing a new sink, tap-ware, benches, cupboard or cabinet doors and handles as well as upgraded appliances.
3. Bathroom upgrades
Bathroom renovations are a cost-effective way to add value to your home, and may attract buyers who would like to move into a property that needs little work and is ready to live comfortably in. Modernising the vanity, tap-ware, toilet and shower can make a huge difference to the appearance of your bathroom.
4. A fresh coat of paint
By painting using neutral, light tones, you can make your space appear larger, which will attract more buyers.
5. Updated flooring
If you’ve got old carpet, you could consider ripping it up and polishing any old floorboards underneath (if they exist). Sanding and polishing floorboards or installing new carpet or tiling can make the world of difference to your property.
Be careful not to over-capitalise
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.
How to renovate for profit – what’s next?
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.