How to renovate to generate wealth
How to renovate to generate wealth
With property in the capital cities literally 'flying off the shelves', it may at times feel like the right decision to quickly list your property for sale to get a good buck. But what is the best way to generate wealth and ensure you get the top dollar for your property?
If you can make your property stand out from the rest, then you are sure to generate plenty of interest, and if you have many bidders competing this will push up the sale price for you.
A simple renovation could be a quick solution to ensure you gain maximum interest from buyers, but it needs to be the right renovation.
So, how do you renovate to generate wealth in the current market?
Renovate to what the market wants, not your own personal style
Keep this at the forefront of all the minor works you conduct, as this will attract the most amount of buyers for your property.
A fresh coat of paint (inside and outside!) will instantly give your property an updated feel as well as increased street appeal which will gain the attention of buyers.
Keep the colours neutral - whites, creams, and greys - as they will provide a blank canvas for the buyer to make the home their own.
If you have dirty carpets then look at these being replaced or if you rip up the carpet you might find some useable floorboards underneath that may just need some sanding and varnish.
New flooring will add to the property’s value because this is usually the first thing that buyers look at and take note whether there will be additional spending for them to be replaced once they have purchased the property.
Don’t neglect the outside of your property
Many property buyers will do a “drive by” of properties to see whether it is actually worth going to the open home inspection, to cut down their list for the busy weekend inspection times.
It is important to ensure the fencing is in good shape with no ant nests or termite damage, that your pathway and driveway has been pressure washed, and that your letterbox is clearly labelled and in good condition.
Don’t forget to look up at your roof either! Inspect the guttering for any damage, clear any leaves and debris, and a pressure wash or paint will have your roof adding to your properties overall impression
Consider interior styling
If your furniture is looking a little tired and your artwork is uninspiring, then it is a smart idea to hire a property stylist who can provide a makeover of your interior without you needing to purchase all new furniture for a property you are going to sell.
They are experts at styling the space, and the cost that you spend on a stylist and furniture hire is definitely worth it when it is outweighed by the gain in your properties sales value.
The psychology behind this, is that buyers will walk into a space that looks beautiful and really be able to picture themselves living in a beautiful property like this.
Once they can already picture their own family living in the property, it will be difficult for them to pass it by!
But, how do you ensure you don’t overspend on the renovation?
As a general guide, for every $1 you spend on a minor renovation you should aim to increase the property's final sales value by $3.
It is important you set a budget for the renovation work and don’t go over this.
Make a list of what needs to be fixed and prioritise your spending. To determine the gain in sales value from the renovation it is wise to compare recent sales of renovated properties in the area to the un-renovated properties and determine whether there is a large discrepancy in the final sales value.