Often, renovating before selling is the only way to make a residential property more attractive for the buyers. In this blog, let’s discuss the opportunities and the obstacles that this strategy brings about for a homeowner. Continue reading if you have been thinking about doing this for some time now, and if you are wondering whether this is the right approach for you.
Drawbacks of renovating before selling your home
To be honest, there are times when the renovation took so long and became more expensive than expected.
There are cases when the owner failed to make a profit and lost money on the sale as well.
All renovations are difficult and challenging in nature, which is why conducting this prior to a sell requires critical thinking. You are going to invest your time, money, and energy on this project. You want to make sure that all your efforts are worth it in the end.
Also, do not get discouraged just because you read or heard a few bad stories. Your project is different from theirs and you can avoid the mistakes they made. Here are a few suggestions that will help you get through the renovation without breaking the bank (and breaking your heart):
The renovation might take a while to finish and delay the sale
Quick cosmetic touch-ups (e.g. repainting) will only take a few days.
Major overhauls (e.g. a complete bathroom/kitchen reno) might take weeks or months to finish. During this time, there could be a change in the local real estate market that might affect future sales.
If the real estate market in your area is hot right now and you want to sell your home as soon as possible, avoid time-consuming renovation projects. Plan your project carefully and stick to your timeline to avoid delays.
It would be helpful to seek advice from renovation experts early in the process to make sure that you are on the right track. Working with professionals can help you make modest improvements in your home within a few days or a few weeks.
The renovation might be expensive
Not all renovations cost an arm and a leg. There are home improvement projects that you can complete with a small fraction of your savings.
It is very important to know exactly how much you are prepared to spend on your renovation from the very beginning. Your budget will help you create the scope of the project. Once you determine the areas that need improvement, sticking to the plan and the budget will be easy.
You also need to know the factors that affect the final cost of the renovation. Factor these in when you calculate the amount of money that will be spent on the project and avoid budget blow-outs:
- the condition of the house
- the complexity and length of the renovation
- the cost of building materials used
- and, labour costs
Renovations prior to selling might result in a very little to no return on investment
Overcapitalising or spending more than you can get back from the sale is a very common problem. There is no guarantee that you will get the money back, which is why it’s not required to spend a fortune on your renovation.
Work on projects that offer higher returns such as repainting, improving curb appeal, creating outdoor spaces, and updating bathrooms and kitchens.
Think of how you can potentially break-even the costs as well. For example, surface bathroom and kitchen renovations are cheaper than a full renovation. These might be the better route to take considering that most buyers won’t pay above and beyond.
Renovations are hard, but it can be a piece of cake when you have a trusted project manager like Superdraft to organise the designers, consultants, and builders who will work on your project. With our help, the renovation will be more manageable, which is great for first-time renovators.
The opportunities of renovating prior to a sale
A renovation, when planned carefully and executed well, makes a difference. Here’s how:
A renovation can remove the buyer’s objections
It is normal for the buyer to find reasons not to buy a property. Small issues like wall cracks, outdated decor, damaged doors/windows, overgrown and deserted gardens, and broken fixtures often turn off buyers and kill a sale.
Fix these issues during the renovation so the buyers have nothing negative to say about your home during the open house.
The renovation can increase the resale value of the home
As mentioned earlier, projects such as improving curb appeal, creating outdoor spaces, and updating bathrooms and kitchens offer good ROI.
Cosmetic fixes such as repainting and installing new floors, when executed properly, also have a positive impact on property value.
In addition, if you built an extra room or extended the house, you can increase your asking price and surely profit from the renovation.
The renovation can make your property more attractive to buyers
A newly renovated home listed on the market has a huge selling point. Imagine how many prospects you can attract when you highlight your new kitchen, bathroom, or home extension. That, plus professional photographs will make your property one of the hottest listings that people see online.
The renovation can reignite your stale listing
There is something wrong if your home is already for sale and it’s not attracting buyers despite the healthy real estate market. Ask your real estate agent why nobody has expressed their interest. Then, consider a minor renovation to improve the structure and reignite the listing.
Are you going to renovate before selling your home?
Depending on the structure’s current condition, your home might need a minor renovation or a complete overhaul.
It is highly recommended to conduct an on-site consultation with an expert designer to discuss the scope of your home improvement project.