A common question I am asked when people are considering selling their property is whether investing in additional renovations will produce a more profitable sale. In short, should I spend some money on my home now to make more money when I sell.
The first thing to keep in mind is that every property is different. Some homeowners might need to spend money on their property to make a sale, and others won’t.
And the factors at play are variable. It not only depends on the property’s current condition, but on the state of the local real estate market as well. A high supply of quality stock in your local area might mean you need to spend a little on raising the standard of your home to meet buyer expectations.
There are many different ways that can be used to smarten up a property before putting it on the market. These could range from a basic clean-up job to a full renovation.
The critical factor should be the return on your investment. You must consider whether the cost to improving the look of your home before putting it on the market will result in a sale price that is higher than your renovation investment. There is no science to this and can be somewhat tricky to measure.
A good real estate agent who knows the local market intimately will be able to help you understand the value of the different levels of renovation investment and its effectiveness at sale time. Your agent should be able to answer questions about the state of the market in general as well intimate knowledge of the local competition and what features drive up a sale price. Whether you consider engaging a professional or conducting some DIY renovations, your agent will know what will work the best for you and whether these modifications are necessary in the first place.
It is not a bad idea for you to conduct your own due diligence by visiting comparable homes in your area that are on the market. This will assist you in gauging whether that pergola you are thinking of building will drive up the sale price or whether it will leave you out of pocket.
If you are going to spend money on your home, it’s vital to ensure that this money is going to be put to good use and result in a higher profit at the point of sale.
For details on what renovations in your home could help drive up the sale price, head to my website at www.jenniferpearce.com.au