The “Do’s” of renovating for sale
With the Australian property market as a whole having seen stagnant or depressed growth this year, some prospective vendors may be looking for cost efficient ways to increase the value and marketability of their properties.
It is not uncommon for people to renovate, or ‘spruce up’, a property before selling it. However, the dilemma that many vendors come across is in knowing where to invest to add value and come out ahead in the sales prices that they achieve.
Given such, I have decided to share a few useful tips to help you get the most out of the property renovation process:
1. Market research;
Before embarking on renovations, consider researching your property’s location and the demographic/s related to it. Try looking up local market statistics and perhaps seeking help from a local real estate agent to find out what kind of people would be interested in renting or buying your property, and then make renovations accordingly.
Another way to get an idea of what type of renovations might be most profitable is to examine the growth of different industries within the home sector; because when a certain industry shows substantial growth and is also predicted to continue growing, you generally know that that area is one that consumers value and will likely be willing to spend money on.
2. Plan and stick to budget;
When renovating a property it is easy to get caught up in the process and overspend. Given such, it is always a good idea to establish from the outset not only how much you are able to spend, but also how much you will need to spend to enhance the value of the property.
Once you’ve established a budget, you should then plan and prioritise renovations accordingly. If you can’t afford to renovate everything at once, prioritise your renovations based on the impacts that they will likely have on the property’s value. For example, if your kitchen is the major issue and needs a $20,000 renovation, save up until you can afford that renovation, as opposed to spending money on a bunch of smaller jobs that may have less overall impact.
3. Focus on kitchens and bathrooms;
Kitchen and bathroom renovations will usually cost the most money but will also likely add the greatest value to your property. This is because no matter how the rest of a property is used, these rooms are (in most cases) most consistently utilised by home occupants in their day-to-day lives.
The latest trends in kitchens and bathroom designs include open plan and maximised storage space areas, large ceramic tiles or wood floors in neutral colours, marble or concrete countertops as well as stainless steel appliances. Large granite tiles have also become increasingly popular for making over floors, baths and showers.
4. Wash and repaint walls;
Applying a fresh coat of paint on the interior of your property probably won’t cost you a great deal of money and could considerably add resale value to it. You may want to consider doing the job yourself or hiring a contractor depending on your capabilities and the level of time, labour and effort you are willing to expend.
Also, remember to clean interiors before painting them as doing such will get rid of lingering unpleasant smells, particularly in areas that are susceptible to smell absorption such as bathrooms and kitchens.
While you should repaint walls, try not to go overboard with colour. When renovating for sale it is always important to allow prospective purchasers to visualise their own colour themes, paintings and furnishings in the space. Given such, it is a wise idea to stick to neutral shades such as whites, off-whites, beige and coffee colours.