In her article this month we asked BERNADETTE JANSON, Director of The School of Renovating to share her thoughts on whether it is worth going to the trouble of renovating before selling a property.
So you have decided you want to sell your property. Now you are faced with the decision to renovate or not.
The condition of the home is an important factor but in most instances you can make a serious impact with a makeover ranging from a major declutter to a full scale renovation.
Is renovating worth the effort?
If you are wondering whether it is worth the effort, consider that a dated property will usually increase by at least 10% – 20% with a well executed makeover.
Let’s say your home is valued at $600,000 then you are talking $60,000-$120,000 for your effort.
Even supermodel Linda Evangelista (who was famously quoted that she wouldn’t get out of bed for less than $10k/day) would be mildly motivated at the potential return on investment.
Don’t ask your real estate agent’s opinion though.
You will almost certainly be advised against renovating in favour of getting on the market quickly.
Your agent will prefer you sign an agency agreement as quickly as possible. By suggesting that you go off and renovate, he/she runs the risk of losing your business to another agent in the process. The agency commission on the $600,000 property is around $12,000 so the stakes are pretty high.
From your point of view there aren’t many opportunities to pocket tens of thousands of dollars for a few weeks’ work but preparing your property for sale is one of them.
If you choose to list your property without ensuring it is in peak condition, you are squandering that opportunity.
The only exception is if the property is a bulldozer job, but even then it will be more useful to buyers if it is rentable.
The more desirable it is to buyers the more hope you have of a better price.
Of course how far you go with the makeover depends on:
- The current condition of the property
- The location of the property and margin for profit
- The funds available to you
In the next blog I will go into detail on these points and outline the three levels of renovation to massively increase the sale price of your property.
In the meantime, you might like to read about Tim, who sold his 20 year old property for a tree change to country NSW. He spent $18,000 on a makeover and styling and increased his sale price by a whopping $100,000.
Safe to say she lives and breathes renovating! She successfully harnessed her passion for creating beautiful homes to replace her nursing income. It has enabled her stay at home to raise her children, fund family holidays and weddings, give her young adult children a start in their property journey and fund her retirement.
Bernadette helps passionate renovators and property lovers to profit from their passion and replace their income either now or on retirement.