08 Feb Renovate and sell – The ultimate guide
House flipping, presale renovations, fix sell pay – whatever you choose to call it the concept is still the same. Increase the resale value of your home by investing money in a renovation before you put it on the market.
Many people do this as a living, some do it for a hobby and others yet just want to give their family home the highest chance of getting the best return possible when it hits the window of the real estate agent.
Now this article isn’t about what market to sell in or the best areas to buy a home – we’re going to be talking about the renovations that can help increase the resale value of your home, because that’s what we’re experts in.
Some renovations will cost more than they’re worth, others will add considerable value to your home without huge investments. We’re here to help guide you through that process and give you enough information about pre-sale renovations to help you make informed decisions before you sell your home or order any renovations.
Step 1 – Understand the difference between what renovations you need to be done and what you’d like to be done
When considering the areas or rooms of their home to renovate, many people think about the rooms they would love re-done or the areas that have been a bugbear of theirs for the entirety of their stay in this home. The trick here isn’t to focus on the things you would like done in your home but to focus on the things that will bring about the best resale value in the current market.
Certainly, there is likely to be some crossover of these two things, but we often get customers with perfectly fine bathrooms wanting to renovate because they hate the tile colour or feel they need a completely new kitchen because the layout doesn’t suit them.
It’s often difficult to view our house as an indifferent bystander, but often this is what you need to do to understand what renovations should be done around your home.
Step 2 – Focus on what can be changed and not what can’t
Sure we’d all love an extra story on our home, a large swimming pool or a rumpus room for the kids, but not every home has space or framework to enable these types of changes. Working within the available framework of your home will enable you to choose which pre-sale renovations will bring in the most amount of return for your investment.
The idea of what a good return on investment entails can take many forms. Most people are looking to sell their home for more money than they’ve invested in it. Other people want to offload their home quickly and are happy to have only a modest profit from the sale.
Whatever your reasons for wanting a presale renovation, working on highlighting the features of your home along with working on elements that can be updated, renovated or changed for the budget you have allocated is the trick to a successful presale renovation.
Step 3 – Don’t underestimate the power of a simple makeover
One of the things many people don’t realise is the power of a simple makeover of their home. Things like replacing broken or missing palings on the front fence along with a new coat of paint, some simple landscaping or new interior paint can make a big difference to how potential buyers see and value your home.
There is much research surrounding the importance of first impressions in people and this can also be extended to other areas of our lives, like our homes. You want to make a great first impression of your home as potential buyers drive up your street and evaluate your house not only for its land and rooms but also as a potential home for at least the next few years.
Step 4 – Kitchens and Bathrooms are big sellers
Of all the renovations that can potentially bring in the most value to your home, kitchens and bathrooms are the big ones.
The thing to remember with bathroom and kitchen renovations before selling your home is there are many different elements to these rooms (appliances, cupboards, taps and tiles, etc) so it’s easy to overcapitalise and spend huge amounts on all the latest and greatest gadgetry.
Remember you’re getting your home prepared for sale, not fitting it out with all the best and greatest appliances and rare marble that cost the earth and then some. By going into a bathroom renovation or kitchen with a healthy budget and realistic expectations of what’s possible, there are many ways you can give your bathroom or kitchen a contemporary new look or update without overspending and Titan 360 is here to help you navigate the different options available to you.
Step 5 – A splitter splatter of paint can go a long way
Adding a coat of new paint to your home (inside, outside or both) can add enormous value to your home. Not only is this a quick job (if you hire a professional presale painting company like Titan 360) it’s also incredibly cost-effective.
Neutral colours are always better to choose as if you start looking at wild colour palettes, it can put some buyers off (remember, just because you like hot pink or sunset red, doesn’t mean everyone else will).
Step 6 – Street appeal is the real deal
Many people forget the first impression a potential buyer will get of your home is the street appeal. It’s often forgotten when it comes to renovation plans. This is understandable (I mean, how often have you stood over the other side of the road looking at your home?) as most people tend to look at the issues within the home when looking to allocate budget for a presale renovation.
When thinking about renovations, it’s a good idea to look at your home the way a customer would. Do the trees out the front need a trim? Are there dead branches hanging off? Are there patches of dirt in your lawn that could do with some grass seed? Are palings missing from your fence or could they do with a coat of paint or perhaps a going over with a gurney?
Step 7 – If a potential buyer can’t see it, it might as well not exist
One thing to be mindful of when renovating before a sale is to make sure you don’t plough too much of your budget into items around your home that can’t be seen by customers. Sure insulation will be great to keep the heat out in summer and inside in winter, however, if a customer can’t see these items and an agent can’t sell the benefits of these things, it’s likely they’re not going to be considered when they make you an offer.
Here are some of the ‘hidden’ renovations that may not add all that much value to your home:-
- Wall insulation
- Ceiling insulation
- Double glazing
- Air conditioning systems (particularly ducted systems)
- Complex gardens with expensive plants (the people buying may not care for gardening)
- Replacement of roofing (unless it’s in terrible shape)
- Alarm systems
- Luxury fittings (ornate lighting for example)
- Cinema rooms (a family will likely convert this to a bedroom or office after the sale)
Ultimately if you’re smart with your dollars you can do some modest renovations with great results. If you’re looking to engage with a pre-sale renovation company that will help you renovate and sell for a profit, talk to Eric today on 0481 536 900 for a chat about what’s possible.