Tuesday, 16 August 2016

Should I spend money on my property before I sell?

Stop! Put down the brochure for a brand-new kitchen installation and read this article.

Over the years we have run into many property sellers who have literally spent fortunes adding to and improving their property.

When it comes time to sell their property, these same owners make the mistake of adding up all the money they have spent on improvements over the years and expect their agent to achieve a sale price that reflects a return on their investment. This is not always the case.

Such large scale improvements can simply “over-capitalise” a property. For example installing marble tiles in a typical home in Campbelltown with a cost in excess of $10,000 would not be a smart investment. In reality buyers would not be prepared to pay extra for this improvement when a similar home in the same area offers similar tiles for much less.

It is important to remember that all potential buyers are looking to secure a bargain. As such your aging property could net you a greater sale price from a buyer looking to renovate, than investing in the renovation of your property before putting the property on the market. Why? Well you have to remember that a renovator’s dream will appeal to renovators, a booming trend with the popularity of such TV programmes as ‘The Block’ and ‘House Rules’. Also to some buyers, freshly renovated properties can be a real turn-off because they will feel that the seller is presenting the property in search of maximum profits.

Our advice is to stick to small investment, large impact projects such as new carpet, repainting and updating fittings. This will give your property a fresh appearance whilst not hurting your back pocket when it comes to your return on investment.

Before you pick up a paint brush contact us offices today to speak with one of our sales agents. We can provide you with advice on what projects to invest in and whether to invest in a professional tradesman to complete such work. Remember, that although DIY can save you money up-front if you don’t have the know-how to complete the renovation with a great finish, it can cost you thousands extra for a professional to fix it.

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