With the current combo of cheap lending and subdued property values, in today’s market the idea of renovating to sell needs to be carefully considered.
Our friends at Maintain To Profit, are experts in savvy property maintenance and renovations, and they have some sage advice for would-be renovators….
TIP ONE: When weighing up a reno on a property destined for sale, start by formulating a firm to-do list, budget and ‘wish-list’ of actions that will bring the property (and your intended profit) in line with recent sales in the area.
TIP TWO: If the property is structurally sound and you’re looking to sell a renovated package rather than selling on a property’s potential, then focus on aesthetics. Bathrooms and kitchens are the obvious places to start due to their potential positive impact on final sale price.
TIP THREE: A very dated property with original fixtures may be begging for a full upgrade including layout, but, cosmetic tweaks such as new benches, refinished cabinetry, plumbing fixtures and a new dishwasher could halve your reno budget and create a refreshed interior that appeals to buyers.
OneRoof also recently published some top tips tips for preparing a property for resale. These included:
Minimizing time investment is a key factor when determining the scope of a renovation, not only for reducing labour costs but also finance costs and the risk associated with market fluctuations. Focusing on traditional ‘Kiwi’ requirements (outdoor living, off-street parking, landscaping) and steering clear of trends was also recommended.
Be smart with your budget and use staging companies to bring fashionable elements into the interior décor, rather than investing time and money into semi-permanent ‘improvements’ that may not be to the taste of potential buyers
KEEN ON BUYING A DO-UP TO RENOVATE AND SELL? ONEROOF SPELLS OUT WHAT YOU NEED TO CONSIDER…
Bargain hunt – securing an under-valued property means optimal profit potential.
Act fast – with finance costs eating away at your profits, every day counts. So do what you can to get in to the house prior to settlement, start planning, ordering materials and getting contractors ready for action.
Focus on the easiest wins first – paint, landscaping, fittings and fixtures and, when you come to sell, staging. If the kitchen and bathroom are tired, but otherwise okay, upgrade things like benches, taps and handles.
Spend your budget on the essentials – first things first you need to get the house sound, but if there are too many hidden jobs (fixing electricals, plumbing or piles), walk away. You’ll be spending money on stuff buyers don’t see.?
Pay attention to the exterior – look at what you can do to create street appeal and off-street parking.
Need some advice on how to finance your renovations? We’re here to help, simply get in touch by clicking here.