Renovate to Sell: Adding value vs Over-capitalisation
Renovate to Sell - couple holding a paint can and roller
When it comes time to sell many ask – what should we do before putting the home on the market? What are buyers looking for? Should I renovate before selling?
Once you decide to sell, any money you spend on the property must be treated as an investment. That means the money you spend needs to generate a profit (i.e. a greater return than the cost).
A rule of thumb is that every $1 dollar you invest should add an EXTRA $1.50 in value to the property.
Problems occur when you invest say $20,000 in work to a property, and this adds $20,000 to the final selling price. This investment returns you 0% – zero! When you consider the time, effort and risk the real return is likely to be negative!
If you are thinking about spending a large amount of money to prepare for sale it may not be worth the time, effort and risk. It may make you feel better about selling your home, but it may not make your sale more profitable.
Ask yourself, are the proposed works going to be an investment or a cost?
Another important consideration is anticipating what buyers want, because what attracts one person may repel another.
Many sellers have made the mistake of renovating in the wrong place, style or standard.
When this occurs, buyers may be unwilling to pay for features they don’t like or want.
When deciding upon renovation work it pays to consider what buyers want, rather than what you like. Speak with a few well-informed advisors for ideas on what work is prudent and necessary before going on the market. Interior designers, valuers and real estate professionals can offer valuable insights on what work will benefit the sale and what won’t.
Just remember, increasing the sale price does not necessarily mean increasing the profit.
Take your time and let commonsense guide you with the support of your trusted advisers. We’re often called upon for advice, and we’d be happy to help you too. Call us anytime on (06) 835 4321.
Turn downsizing stress into strength
Downsizing can open the door to a new stage of your life that is rich in opportunity. However, it can be a daunting prospect. If you are embarking on a new chapter of life, the thought of shedding familiar possessions can feel even more stressful. This can be true even if the life changes are a good thing, such as a move to somewhere you will love to live.
Once you understand why you have this feeling, you can reframe it as creating a new environment that will support your present life while reminding you of your best experiences.
Click read more for the full article.
Minimalist Design in Apartment Living
Ryman’s Charles Upham Retirement Village resident Di is a former fashion designer, artist and self-confessed shoe hoarder who travels, still paints and has stamped her eclectic minimalist style on her apartment.
She gives us her top 3 design tips on how she’s turned her space into a beautiful home.
Hi, what's your name?
We want to get to know our neighbours and we think you do too!
Simply share a little about yourself on the Know Thy Neighbour page and others will follow suit (you could also win one of our 10 x $50 Prezzy® cards!).
Are you the go-to person for baking advice (and a cup of sugar!) or have some computer skills that you're happy to share? We'd love to know.
Whether you're looking for others to join you on your walks, or just wanting to know more about your neighbours, go ahead and introduce yourself.
Loading…
