THE BENEFITS OF A PRE SALE-RENOVATION

Selling a home can be a complicated process. However, with the right preparation, it can be a rewarding and stress-free experience. A pre-sale home renovation or getting small jobs out of the way is one way to increase the value, reduce the likelihood of a buyers trying to reduce the price at building and pest time and ensure the appeal of a property before listing it on the market. All renovations will cost it is just to what extent you wish to complete the renovation.  Costs can vary depending on how much work you do yourself and if you are making small or large changes.  Give Narelle from All Around Realty a call and she can help walk you through this process, so you do not over capitalise on your project. 

Here are 5 benefits of a pre-sale home renovation and 7 high return renovation options to consider.

Benefits of a Pre-Sale Renovation

1. Increased home value:
   A pre-sale home renovation can increase the value of a property. By making updates an improvements to the home, it becomes more attractive to potential buyers and can increase the asking price.

2. Faster sale:
Homes that have been updated and well-maintained tend to sell faster than those that have not. A
pre-sale home renovation can make a home more marketable and appealing to potential buyers,
leading to a faster sale.

3. Better return on investment:
A pre-sale home renovation can also result in a better return on investment. By making
improvements to the home, the selling price can be increased, resulting in a higher profit for the
homeowner.

4. Better negotiation power:
A pre-sale home renovation can give the seller the upper hand in negotiations with potential buyers.
By showing that the home has been well-maintained and updated, the seller can be in a stronger
position to negotiate a higher asking price.

5. Increased buyer confidence:
A pre-sale home renovation can increase the confidence of potential buyers. By seeing that the
home has been updated and well-maintained, buyers are more likely to feel confident in their
purchase and be willing to make an offer.

5 High Return Renovation Options:

Not all renovations are created equal and there is always a risk of over-capitalising when renovating anything in your home, so we’ve compiled a list of 5 high return renovations that will increase your value significantly to help guide you in your pre-sale renovation discussions.

1. Kitchen Renovation:
   A kitchen renovation is one of the most popular and high return home renovations. An updated kitchen can increase the value of a home by up to 5-6% and can take anywhere from 4-8 weeks to complete. Potential cost for a kitchen renovation can range from $15,000 to $30,000.

2. Bathroom Renovation:
   A bathroom renovation is another popular renovation that can increase the value of a home. A well-designed bathroom can add up to 5% to the value of a home and can take anywhere from 3-6 weeks to complete. Potential cost for a bathroom renovation can range from $10,000 to $30,000.  Narelle is consistently informing owners that when renovating your bathroom, you need to be aware that all waterproofing must be done by a professional.  Once done, you should be supplied a certificate as proof at the end of the job as per the building legislation.

3. Outdoor Living Space:
   An outdoor living space such as a deck or patio can add value to a home and provide a space for entertaining. Outdoor living spaces can increase the value of a home by up to 5% and can take anywhere from 2-4 weeks to complete. Potential cost for an outdoor living space can range from $5,000 to $15,000.

4. Flooring Upgrade:
   A flooring upgrade can change the entire look and feel of a home. A flooring upgrade can increase the value of a home by up to 4% and can take anywhere from 1-2 weeks to complete. The potential cost for a flooring upgrade can range from $1,500 to $10,000.  (Carpet from $1500 to $3000 or Hybrid Vinyl Flooring or Tiles from $5000 to $10,000).  Since the introduction of Vinyl planks, the sales of carpet and tiles have markedly decreased, telling us that Vinyl planks are the way to go right now. 

5. Painting:
   A fresh coat of paint can make a home feel new and updated. Painting can increase the value of a home by up to 2% and can take anywhere from 1-2 weeks to complete. Potential cost for painting can range from $2,000 to $12,000.

6. Adding a Shed:
   If you have side access and the space, the addition of a shed can have the greater impact on the sale of a home – Cost depending on size can be from $10,000.  However, you will double your money spent by adding a shed, so if you spend $15,000 on a 2 bay shed the return at sale time can be $30,000.  The larger the shed the larger the return.

7. Solar Power:
With the ever-increasing cost of electricity buyers in Queensland favour homes that have solar
power already installed.  In fact, a property with Solar power will achieve an additional $15 to
$40,000 dollars depending on the unit installed.  Also, they receive 30% more attention online when
buyers are searching for a property.  Research has shown that a property with Solar power will sell
50% faster than a property without.

If you’ve got the time, renovating prior to sale can have a positive impact on the result when selling your home, buyers are often chasing properties that they can “just move in to” and don’t have to spend time fixing or renovating themselves. Homes that are freshly renovated and don’t have work to be done, have traditionally presented better, attracted more interest and competition and fetched higher prices in the market.

Give Narelle from All Around Realty a call and she can help walk you through this process so you do not over capitalise on your project while discussing the difference a pre-sale renovation can have on your property.