Selling
Investor
What you need to know about upgrading or renovating to sell
11-Feb-2019
The question of whether to upgrade or renovate parts of your home before selling is one that’s a major consideration for many vendors.
But which renovations are worth it when it comes to delivering a return on auction or sale day?
Here are the upgrades you might want to consider, and when you should potentially avoid them.
Consider your price point
Renovations just aren’t worth it for many cheaper units or apartments, either because the potential sale price won’t justify the expense, or because the buyers will want to renovate themselves and put their own personal touches on the property.
Re-carpet the bedrooms
Laying some new carpet in the bedrooms is one of the cheapest ways to potentially add extra value to your sale price.
If you have worn or daggy carpet, re-carpeting those rooms can make a huge difference to buyers’ perception of the property, and what they could be prepared to pay.
Ducted air conditioning
Air conditioning has long been a non-negotiable for most people when considering buying an Australian home.
For homes priced at $750,000 and above, a large number of buyers are taking it a step further and now consider ducted air conditioning a must-have.
Buyers will just walk in and say, ‘No, I’m not spending that sort of money, it doesn’t have ducted’,
While having ducted air con installed might not add obvious immediate value, it may significantly increase the number of interested buyers, which could deliver a big boost to your sale price.
Kitchens and bathrooms
The two most obvious spaces that are ripe for upgrades to add value are the bathrooms and kitchens.
The key, however, is not to overcapitalise. Kitchens and bathrooms are the two most expensive rooms to renovate, and spending $30,000 on each of them might not necessarily give you the return you’re after.
If you do embark on a renovation, stick to neutral colours, tiling and fixtures that won’t polarise buyers, and if in doubt, seek an agent’s advice as to whether the improvements will really deliver the price hike you’re chasing.
SOURCE: REA Group
But which renovations are worth it when it comes to delivering a return on auction or sale day?
Here are the upgrades you might want to consider, and when you should potentially avoid them.
Consider your price point
Renovations just aren’t worth it for many cheaper units or apartments, either because the potential sale price won’t justify the expense, or because the buyers will want to renovate themselves and put their own personal touches on the property.
Re-carpet the bedrooms
Laying some new carpet in the bedrooms is one of the cheapest ways to potentially add extra value to your sale price.
If you have worn or daggy carpet, re-carpeting those rooms can make a huge difference to buyers’ perception of the property, and what they could be prepared to pay.
Ducted air conditioning
Air conditioning has long been a non-negotiable for most people when considering buying an Australian home.
For homes priced at $750,000 and above, a large number of buyers are taking it a step further and now consider ducted air conditioning a must-have.
Buyers will just walk in and say, ‘No, I’m not spending that sort of money, it doesn’t have ducted’,
While having ducted air con installed might not add obvious immediate value, it may significantly increase the number of interested buyers, which could deliver a big boost to your sale price.
Kitchens and bathrooms
The two most obvious spaces that are ripe for upgrades to add value are the bathrooms and kitchens.
The key, however, is not to overcapitalise. Kitchens and bathrooms are the two most expensive rooms to renovate, and spending $30,000 on each of them might not necessarily give you the return you’re after.
If you do embark on a renovation, stick to neutral colours, tiling and fixtures that won’t polarise buyers, and if in doubt, seek an agent’s advice as to whether the improvements will really deliver the price hike you’re chasing.
SOURCE: REA Group