Renovations: a help or hindrance to selling your property?
Category Blog
People will buy a property because they are excited about visionary renovation, or alternatively buy a property already cleverly and suitable updated because they don't want any hassles with workmen. It really depends on the motivation of the buyer. However, sometimes lack of renovation can work against your sale, or - just as annoyingly, the renovation itself may not find favour with prospective buyers.
Advice is often confusing as well: don't do anything to your house, sell it as is - OR - if you want a decent price for your house, you must at least update your kitchen. Much of your planning may be financially or emotionally driven. But there are several considerations to take into account when making a decision.
Is the renovation worth the money?
A mistake people often make is that they over-invest in the renovations, believing that the more they put into it, the more they will get out. And of course, this is not always true; it's possible that you may not recoup the cost of the renovation when you sell. There are renovations that are useful - especially the kitchen and bathroom areas - but repainting the house in bright colours that you like might be off-putting for buyers who don't share your appetite for red or green. If you think that putting a well-appointed pub in the backyard will sway buyers, you may be sorely disappointed, no matter how splendid the marble-topped bar may look.
The blank slate buyer
If you're in a hurry to sell, or can't afford renovations, you can always market your house as needing 'some love and care'. There are plenty of people who love houses that need some doing up; they like to put their own creativity and stamp on the property - and might even rip out some improvements you have lovingly undertaken. Indeed, some buyers may push the price down because they already have exciting (costly) ideas in their heads, while others might be will to pay your price because they see the great potential in your house.
Make sensible renovations
It's a good idea to update your house regularly: keep the exterior in good nick, repaint the interior, install a new geyser, replace the taps in the bathroom or install a heated towel rail. There's no way of knowing how quickly your home will sell - it all depends on the market. So the renovations should be things that don't cost a lot of money and which would make the house more comfortable during the time you are waiting to sell. Don't be too specific: door handles that resemble those in Dracula's castle or a red living room will probably not find favour with others who don't share your vision. Keep adjustments bland, low-key and functional.
The kitchen calling
Most estate agents know that the most persuasive room in the house is usually the kitchen, closely followed by the bathroom. The kitchen is after all, the heart of the home, and a modern, fresh kitchen is a huge plus. But a complete make-over can be expensive. Sometimes a few changes can make the world of difference: repaint the cupboards, replace countertops, put in modern blinds at the window, change the light fittings. None of this is unaffordable, especially if you do the changes over time. And whether buyers want to completely redo the kitchen or are charmed by its fresh look, you can achieve a sale.
Be realistic
Don't waste money on renovations unlikely to improve your chances of a sale. Sometimes people change a house badly - they add on ad-hoc rooms, joining one on another which creates inconvenience rather than space; or they refurbish a bathroom with cheap accessories, or build out a garage in a way that doesn't really offer any specific function. Don't engage in improvements that won't add value.
Location, location
Even more important...don't renovate a house out of its character and location; don't overprice your property in its suburb. Some people create a hodge-podge palace in the middle of an area where it stands out as far too grand. Remember, that if you expect people to pay an enormous sum for your 'palace' they could just as easily pay a few thousand more for a house in a location where the property may be larger and values much higher. If the suburb as a whole is likely to only attract middle-come, it's is pointless to renovate beyond the value of the property. You will not get your money back on this. That's why every renovation must be balanced with budget and the best price you can get within the area.
Fix real issues rather than wasting money on cosmetics
It's important to ensure that maintenance issues are up to date. Rather spend money on rewiring, plumbing and fence-fixing than on installing a jacuzzi. If buyers are aware of a leaky roof or faulty light switches it could just be enough to put them off. The fewer issues buyers have to fix on their own, the more money you're likely to get when your property does sell. Just remember to limit what you need to do to an affordable budget. Larger issues can be left to the judgement of the buyer.
Be fashionable but don't be ridiculous
Be careful that renovations don't follow fashion slavishly. Make changes that enhance your home and don't make it look bizarre. Dark grey may be the flavour of the month, but will it suit your house in your area? Will that colour suit the kind of buyers that are going to be looking at your house in its particular price niche? Will that upmarket bio-fuel glass fireplace enhance your living room or overwhelm it when perhaps a retiled old fireplace may have better effect in the context of the age and design of your house? Keep to neutral colours that can offend no one, and keep the renovations within the era and design of the house.
Ensure that professionals undertake improvements
There's nothing worse than a renovation done badly. Even if the improvements are relatively small, do them well with good finish. Buyers will notice a ham-fisted attempt very quickly, and they will assume that everything else in the house is equally poorly maintained or repaired. And the sale will be lost even though you have made an effort to spruce up.
- Get approvals first - make sure you acquire the necessary planning approvals, electric and plumbing clearances.
- Create an affordable and sensible budget and stick to it.
- Investigate your target market.
- Get the expert advice from an experienced agent: whether to renovate, what to renovate, what to invest, and expectations on return.
The Leapfrog Property Group
Leapfrog Property Group offers a fresh and innovative approach to buying, selling, renting and property investments, ensuring the best property deals for clients across South Africa. Our agents are qualified, trained, experienced; our approach bold and spirited, driven by heart, generosity and honesty. It is our mission to advise, eliminate obstacles and save you unnecessary expense. Trust is our watchword. And value our motto. Armed with our combined credentials, we are the bright face of excellence in the South African market.
Find us at: www.leapfrog.co.za
Author: Leapfrog Property Group
