Insights

In today’s competitive housing market, vendors understand that to generate buyer interest it’s essential that their house stands out from the crowd. To that end, one of the most common questions vendors ask real estate agents is whether they should renovate their property prior to listing it for sale.

To Renovate or not to Renovate

Renovations, big or small, come at a cost. When deciding on what home improvements to make, analyse your property in regards to its location, buyer demographic, market value, size and style. It is unwise to undertake renovations without doing your research! Ask yourself what your buyer demographic would deem valuable – what a Caulfield buyer is influenced by may be very different from the needs of a person looking to buy in the Coburg area. Another important aspect to consider is that there is a huge market for buyers who are looking to renovate or make cosmetic changes themselves that suit their lifestyle and needs. Sometimes what seems horrible to the vendor is actually an attractive opportunity to the buyer.

When making any improvement, it is most important that costs do not surpass the value that’s added to the property. Significant renovations are not advisable on homes that have been adequately looked after and are inline with your demographics expectations of size and style.

Exterior – First Impressions Matter

Presentation is king when selling your property and first impressions count. To that end, presenting a manicured exterior is one of the most critical exercises a vendor can undertake when selling their home. Interested buyers may come past and view the outside of your property prior to an inspection and if it presents poorly they may place a lower value on your home, or worse, lose interest entirely.

However there is a fine line between smartly investing in developing your garden landscape and over capitalising. When nominating funds towards sprucing up your property’s exterior, land size and location are two factors to consider. As a general rule of thumb, properties in the entry level end of the market are less likely to return costs associated with anything above basic improvements whilst properties in more prestigious markets offer better returns on external renovations and therefore can be invested more heavily in.

At minimum, make sure your gardens and lawns are tidy and well watered. Inexpensive manicuring, such as adding some greenery and colour with potted plants and flowers, can never go astray. A savvy real estate agent will be able to educate you on the best improvements to make and how much money and time to spend on them.

Let the Right Professional Help You

Making your property more attractive for sale need not be a hugely time consuming or costly task. A skilful real estate agent will be able to help you manage the process and appoint your funds to the activities that will generate the best returns on investment.

Once you have identified the improvements that will positively impact your sale price, ask your agent to help source quotes – it’s our job to help you get the biggest bang for your bud  your buck!

This article appeared in Property Review Weekly on August 15, 2014