Should you do up your property before selling?
Definitely! Well, that’s often the answer from real estate agents, but you have to consider two things.
Agents want to get the maximum price for the property no matter what.
It’s not their money that will pay for the work.
Now, number one is great. Everyone wants the best sale price, but not if your investment in a renovation doesn’t make a difference when it comes to auction.
(By the way, I was a property flipper for 12 years, so I know what I’m talking about!)
The first thing to consider is whether you can afford to make the changes with renovation costs going up by 37.1% in the last 12 months, bearing in mind you also have to pay for marketing, photography and styling of your property to get it on the market.
Secondly, you must examine what a potential purchaser will likely do with your property. If they knock it down and build something new after you’ve poured cash into a new bathroom, it will be a gross waste of your money.
I wrote a blog recently about looking at your property dispassionately when making big decisions (you can read it here), and this is a classic example of where doing your research before taking a financial leap pays off.
For example, if there’s a trend in your suburb for duplexes, and your property has a wide street frontage, then it might be on the radar of mum and dad investors and would-be developers.
By the way, this is a task you should put to the agents as it is their responsibility to price the property for its ‘best and highest use’ - ie. a block of land with development potential will be worth more than a block of land with a single home that can never be developed further.
Remember, you have an emotional connection to your home and loving improvements might make sense in your eyes. Other people don’t think like that and might just put a sledgehammer through your expensive enhancements.
The property-buying journey can be a minefield without experience on your side, so please contact my team if you need help.