Should I Spend Money on My Property Before Selling

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

Guide To Renovating To Sell

 

Almost daily I am asked “Should I renovate the bathroom/kitchen/build a decking to increase my final sale price?

And the reality is that when you’re renovating to sell, it’s difficult to know what to spend time your time and money on. Because if you get it right, you could increase your profits considerably. Get it wrong and you’ll potentially lose thousands of dollars with no return.

So now we know this, what areas are worth spending time and money on and what areas aren’t? Here are a few tips to help maximise profit while minimising spending.

Where to spend 
Clean up the whole house. It really needs to be spotless, so clean the windows, mould and mildew, clean marks on walls and ceilings and remove any cobwebs. Then head outside and do the same, particularly the entry the home. The cost of a professional cleaner before open-for-inspection day is a minimal cost and can ensure your home is ready.
Patch any cracks or gaps on the walls and fill with appropriate filler. Remove excess pictures and picture hooks and leave space for prospective buyers to imagine their own life in the house.

This is a very small cost that can make a big impact.

Repaint walls in neutral shades. This is not the opportunity to express your creativity and flare for colour. As mentioned earlier, you want potential buyers to visualise their own colour themes, paintings and furnishings in the space.

Polish floorboards for a cleaner look. Worn carpet can dates a house and can sometimes devalue a property. If you are game, lift a corner of the carpet and see what’s underneath. If the timber floor looks good, pull up the carpet. It is relatively cost effective to sand and polish boards yourself using an oil-based stain. If there are no boards, or they’re in poor condition, you can either invest in professional carpet cleaning or try floating timber or laminate floor substitutes.

In the bin with any clutter. Remove knick-knacks, children’s artwork, sporting trophies, toys, pet food bowls, fridge magnets and piles of laundry. A lightly furnished home suggests an tasteful living style. Also, rooms appear larger with less furniture and personal effects.

Step out of the house and consider adding a feature like a pergola or a paved area. These look fantastic, particularly when scaped with lush plants. It can create an outdoor living space and provide a harmonious link between indoor and outdoor spaces.

Put up a fence around the property but make sure it fits in with the style of the home. Picket fences enhance a Kyneton period-style home, but are less appropriate for a modern house. If palings are broken – fix them.

 

Where not to spend 

Expensive fittings such as claw foot baths or glamorous pendant lights cost a lot of money but don’t often add real value to the house. Remember that style and taste varies, and your goal is to keep buyers interested. Aim to keep the decoration neutral.

Extensions that don’t harmonise with the other parts of the house appear fragmented. If you plan to extend the house and want to capitalise on it at sale time, engage an architect to give you the best look and affordable option.
Replacing kitchens and bathrooms can often be a waste of money. One of the first projects a new homeowner does is rip out the existing kitchen and bathroom and put in one themselves. Consider putting your energy into making the kitchen and bathroom clean, watertight and functional.

A good ceiling fan however is a great investment.

Elaborate country garden landscaping may be your cup of tea, but could send potential purchasers running for the city.

 Major landscaping is often a huge investment in time and money, and one that may not bring a return.

 

3 Final rules of renovating for sale 

Make a distinction

Spend your time and money on the areas that make a difference to the resale value.

Think about who your potential buyer is

Potential buyers look at the structure of the house – and care very little about your personal style.

Appeal to a wide market

You might think you have great interior design skills, but if the house is falling apart no one will notice your eye for style. Think clean, sound and neutral to draw the biggest appeal possible.

WINNER – Agent of the Year 2017

 

Agent of the Year

Jennifer Pearce of Raine & Horne Kyneton wins Agent of the Year Kyneton in the RateMyAgent 2017 Agent of the Year Awards

 

20 MARCH 2017: Jennifer Pearce of Raine & Horne Kyneton has won the Agent of the Year in the RateMyAgent 2017 Agent of the Year Awards. The awards, which are the largest real estate awards in Australia, recognise those agents and agencies that have ranked the highest based on customer reviews and feedback.

 

“I’m delighted to be named the top agent in the Kyneton market,” said Ms. Pearce. “This award recognises the hard work of my team and the dedication we have to the local property market. In the past year we’ve sold countless properties and we’re thrilled so many of our customers appreciate our work and have rated us using the RateMyAgent site. To be voted number one by your customers is a real testament to the service we provide.”

 

The RateMyAgent Agent of the Year Awards compare over 26,000 agents and agencies across the country. They highlight the leading real estate agents and agencies in each suburb, city and state across Australia, and on a national level.

 

“The RateMyAgent Agent of the Year Awards are the only awards which use verified customer reviews and feedback, so they’re an honest gauge of the customer service an agent has provided,” said RateMyAgent CEO & Co-Founder, Mark Armstrong. “These awards are the only industry awards to put sellers’ needs first, using customer reviews as a leading indicator of an agent’s success over 2016.”

 

The awards, which are in their third year, are the only major customer choice awards for the real estate industry in Australia. Rather than being judged by industry peers, the awards are calculated based on the reviews that customers provide on the RateMyAgent website.

 

For a full list of winners visit: ratemyagent.com.au/agent-awards-2017

 

My top 5 tips for selling your house in autumn

So we’ve already talked about how autumn is one of the best times to sell your house. So now what?

Here are my top sure-fire tips to help you sell your house this autumn.

1. Make sure your garden is looking its best.
Rake the leaves a few times a week to ensure that the garden looks its best for inspection days. If you can, buy some mature autumn flowering shrubs to plant near entryways to greet potential buyers. Pay attention to your outdoor living space just as you would the interiors. Autumn is the perfect time to showcase the exterior of your home because we all know that first impressions go a long way.

2. Commence the de-clutter
This may seem like an obvious one but you’ll be surprised at how many people still don’t understand the value in getting rid of the junk. Mail stacks on the bench, shoes in the hallway, kids paintings on the fridge – it’s time to tidy the house and keep it like that until the home is sold. And while you are at it, try depersonalising the house as much as you can. Buyers want to imagine living in the house however seeing photographs of you on every wall and hard surface might stop them from doing that.

3. Little fixer-uppers count
You may not have the budget to completely renovate the bathroom before you put the house on the market, but the little fix-it jobs around the house can make all the difference. Tighten loose door handles, remove excess hooks from walls and patch them, repair the leaking tap, put new cushion covers on the couch. All of these small things can amount to a large impression.

4. Ditch the bulk – if you can!
Your furniture should fit the scale of the room. That bulky desk that used to belong to grandma might have sentimental value, but its size might de-value the sale price of your house. Put the bulky furniture in storage for the selling period and give your home spacious flow.

4. Let there be light!
Before the gloom of winter hits, make the most of the autumn light. Open all of the windows and let the natural light stream in. If there are dim areas in your home, place a floor or table lamp in those areas to brighten up the space. Inviting people in to a well light home helps them feel at ease and welcome.

So if you are planning on selling your home, take advantage of the magical autumn months. This could be your season.