Tag Archives: renovate
If your property is in need of repair or you’re even considering a few renovation projects to get it ready for sale, there are a few things you need to consider first. Whilst well planned, cost-effective renovations can certainly add value to a home, there is always the risk of over-capitalising. That’s why it pays to look into the types of renovations that really add value to your home and appeal to potential buyers. So when you’re looking to sell, when shouldn’t you renovate?
Remember, renovating for your own personal use and renovating to attract a wide range of potential buyers can really be two different things. It all comes down to your return on investment or ROI. Basically, you’ll want to ensure the amount you invest in the renovation is less than the value you’re adding to the property, and the sale price you’re likely to achieve.
Here we explore some of the situations where we wouldn’t recommend renovating if you’re looking to maximise your sale price.
When shouldn’t you renovate?
If margins are thin
If you’re property isn’t in desperate need of repair, and you’re confident you have quite a bit of equity existing in your property, then renovations may not be necessary. Especially if after crunching the numbers, you’re not confident you would be increasing the sale price by that much, and remember a return on investment can never be guaranteed.
If you need to sell quickly
Renovations take time, both to plan and budget for as well as to be completed. So if you’re looking to sell in the near future, renovations may simply not be possible. Remember that renovations often go over budget and can take longer than first anticipated so factor both of this considerations into your decision.
If the renovation will personalise the home too much
Some renovations appeal to most buyers, like upgrading kitchens and bathrooms, but others can be quite personal to you and your particular needs, taste and style and therefore won’t appeal to the largest number of potential buyers and should be avoided.
This can include adding extensions like granny flats, converting bedrooms into specific-purpose rooms like a media room or library, and separating rooms by adding additional internal walls.
If the renovations will cost more than 10% of your home’s value
A general rule of thumb when it comes to renovating a property for profit, is to spend no more than 10% of the property’s value on the renovations. So the first step would be to ensure you have an up-to-date valuation of your property, performed by a professional. The next step would be to work out a budget, and ensure you add a buffer in case of unforeseen additional expenses. Using the 10% rule, this means a home valued at $500,000 would have a total renovation budget of $50,000. Any more than this, and you risk over-capitalising.
If the renovations won’t suit your target market
This is why doing your research is key. What is the demographic of your property’s neighbourhood? Mostly singles and couples? Mostly retirees or mostly families? Finding out who the neighbourhood is likely to attract will help you determine suitable renovations and not so suitable ones.
For instance, if your local market is likely to attract families, think carefully before adding stylish but potentially hazardous staircases, or ornate glass features.
Ask if you’re unsure
When planning a renovation, don’t shy away from asking your local real estate sales consultant their opinion on the condition of the property, the type of buyer the home is likely to attract and any renovations they would recommend. You may be surprised, if your home isn’t in need of massive renovations your sales consultant will tell you and you may save yourself a lot of hassle, time and money.
Lighting candles, spritzing air fresheners, and baking cookies. They’re all common recommendations when thinking of scents to sell your home, with the long-held belief that potential buyers engage all five senses when inspecting a property.
A lot goes into properly marketing a home for sale, and it’s true what they say, first impressions really do count.
Is your backyard or patio going unused? Take advantage of this valuable area and design a relaxing space with these six tips for creating a usable outdoor living area.
Take a realistic look at the space available to you and ask yourself how your family can best use that area. Do you enjoy cooking outdoors? What type of entertaining do you want to do? Make a list of must-haves for your outdoor living area before getting to work.
A table and chairs or a bar and matching bar stools offer space to gather with friends and family for meals and drinks. Use weather-resistant cushions for added comfort. If space is at a premium, use wide-rimmed planters or sturdy storage chests and coffee tables that can double as extra seating in a pinch.
Give your outdoor space some evening ambiance by adding the right amount of light. Turn off harsh spotlights for gatherings; rely instead on pathway lights, hanging lanterns, fire pits or candles. Use strategically placed lights to call attention to water features or decorative plants, and add extra lighting, such as patio umbrella lights, to dining areas.
Most areas of your outdoor living space will require shade during the day, whether it’s provided by a covered-porch, an awning or an umbrella. Try using tall potted plants to block some sun, or add an arched trellis covered with vines.
If you want to use your outdoor living space most of the year, plan for some climate control. In hot summer months, keep the space cooler with fans and water features. In cooler weather, an outdoor fireplace or fire pit can really heat things up. Large space heaters are another option and are especially useful in outdoor dining areas.
Add interest with colourful outdoor rugs or patterned throw pillows. Create container gardens showcasing ornamental grasses or flowers. Hang wall art or add sculptures to the space, or use glass bowls or jars to showcase stones or seashells. Bring decorative candle-holders, trays and vases into the space as well.
With some careful planning, you’ll have a beautiful space in which to relax and entertain guests while enjoying the outdoors.
With the property market expected to pick up in spring, now is the ideal time to get your property sparkling for your future open home!
1. Steam clean
If you’re contemplating re-carpeting your home, consider giving it a serious steam clean to freshen up the colour first. If you’re time poor, you can hire a professional to do this for you. However if you’re trying to save money, you can easily hire a steam cleaner and do the work yourself.
2. Tidy up
No one likes to see a messy or over grown garden, it’s simply not appealing. Take some time to trim branches, rake leaves and plant some beautiful spring flowers.
3. Fresh coat
If you haven’t repainted your walls in a while, the warm spring time weather is great for getting painting projects completed. You may want to consider repainting any brightly coloured feature walls in a neutral colour to make the room appear larger.
4. First impressions
If your front door is looking a bit drab, give it a new coat of paint too!
It’s the first thing people will see when they enter your property, so make sure it looks polished.
5. Minor makeover
A complete kitchen makeover will definitely add to the value of your property, although it will lower your bank balance temporarily! Make some minor improvements such as changing all of the handles on drawers and cupboards to something more modern and clean looking.
6. Pressure clean
Concrete on driveways or foot paths around the home can look really tired and dirty after a few years. Make it look brand new by using a pressure cleaner to wash away years of built up dirt.
7. Clean windows
Wash down your windows with soapy water to get rid of built up dust and cobwebs. It will allow more natural light in as well as giving off the appearance of a well maintained home.
8. Upgrade lights
If you haven’t replaced your lighting fixtures in the last decade; it might be time to replace them with something new. Head to your local lighting store and purchase some lighting fixtures that are more modern and elegant to boost the appeal of your home.
Re-finishing your outdoor deck every few years will help minimise annoying cracks and splinters, as well as keeping it looking good.
While you are sanding, stripping back, and re-staining the deck, consider re-staining your stairs and some of your wooden furniture too. You could choose a completely different furniture stain colour for a new and updated look!