The most important goal in home selling is getting a good profit out of it. One way to achieve this is to renovate your home to have an additional value that buyers cannot dispute. However, how do you renovate your home for a profit? Read on to be in on some renovation secrets:
Plan, plan, plan.
Lay out a game plan, involving everything down to the last detail. How much profit are you aiming for? How much is your projected budget? Who is your target market? Those are important questions you should answer before pushing for a renovation.
More importantly, determine what improvements you can make that will add value to your home. No matter how fancy or cool your planned renovation is, if it doesn’t add value to your home, you will still lose money down the track.
Usually, kitchens and bathrooms are the ideal spots as they are important to buyers and are high-traffic areas. For instance, you may want to change bathroom fixtures or kitchen cabinet doors to improve its look.
To help you decide, seek advice from an agent and an appraiser so that you’ll know for sure which areas will yield high returns.
Ask for help
You will need to seek advice from professionals for every aspect of the project. A real estate agent can help you assess what valuable upgrades you can do and give you an insight into what buyers want in a home. A valuer can help you with budget estimates. An accountant will give you an idea about capital gains tax.
These are only a few, but as you encounter different stages of the renovation process, you will meet more of those people. However, be sure to pick the ones who are knowledgeable about your area and the market conditions.
Think about your buyer
When renovating for profit, your preferences go out of the window—it’s the buyers’ needs you should consider.
This is why it’s important for you to determine your target buyer, as different demographics need different things.
For example, empty-nesters prefer smaller homes, low-maintenance yards, easily accessible bedrooms and bathrooms, and a location close to shops and public transport.
For a family, a larger house with three to four bedrooms, a large yard where kids can play, and secure fences and gates, and a location nearby schools are what they’re looking for.
Budgeting right is essential
Budgeting the project down to the last details Is important so that you’ll know where every cent of your money goes. A valuer can help you with cost estimates and crafting a budget. Aim to double what you spend in renovation in the final sale.
Lastly, remember to have a contingency fund - at least ten percent of your budget. This will make sure that if ever there are unexpected hiccups, you won’t need to dent your original budget to pay for it.
Focus on doing small, low-cost improvements in your home. New door handles, fresh coats of paint, new fittings and fixtures—all of those little things can make a huge difference to your home’s value.
Assemble a reliable renovation team
Having a team of professionals you trust and have a rapport with can make the whole process easier—for you and for them. This will also make sure that everything is high-quality and you’re getting value for money.
You will need to assemble a team of professionals, consisting of:
The renovation process can be stressful but with thorough planning and a team of reliable people by your side, this process can yield the profit you’re aiming for. If you need renovation advice, you can always drop a message!
BEN WAKELY | 0405 000 219
Bardon Agent of the Year