Renovating a home to sell – is it worth it?

Renovating a home means different things to different people. Some buyers think painting and re-polishing floors fall into this category. Others envisage renovating a home is knocking down walls and remodelling the whole house. I would draw a distinction between renovating the existing structure and adding extensions.

When renovating a home there is rarely an argument for extending a house just to sell it unless you can do it professionally at cost. Most people who try this actually lose money as well as the so-called ‘opportunity cost’. In other words they lose what they could have been doing with their time and money throughout the process. The ones who end up making money are the people they employ. Although extending a property can increase its value also makes it more expensive and narrows the market down to only those buyers who like what has been done. You therefore need to be very sure that the market will appreciate what you are proposing to do before embarking on it.

Renovating a home internally can be a different story. I have previously mentioned in other articles to fix the paintwork, gardens and any defects. Sometimes there is a case for going further. Prime candidates for renovation are kitchens and bathrooms. These are clearly important to the value of any property and for many years to come. A host of home improvement and selling shows and articles have pushed the importance of renovating them. Whether this is appropriate depends on the circumstances.

When renovating a home other items that should be considered are those that would affect the sale itself and often are hidden. They include squeaky floorboards, a sagging roof, bad drainage and past pest damage. You may have already covered these when compiling your list of items to repair.

Remember buyers make up their minds whether to buy a house at three points only:

1. The moment they see the house from the outside.
2. As they first step inside.
3. When they reach the main family living and garden areas.

Each of these points provides a ‘first impression’. If they don’t like the place from the outside, they probably will not inspect it at all. As they come in, they will assess the ‘feel’ and presentation. When they reach the family and garden areas, they will decide if they could be happy living in the home.

Everything else will help determine how much they will pay. Therefore when renovating a home it is in this context only that you need to evaluate whether the kitchen or bathroom or other renovations are required.

Vendor Marketing – Melbourne’s most qualified vendor advocates, specialises in both property marketing and real estate agent selection for property sellers within Melbourne, therefore we can provide advice on renovating a home to sell.