Inexperienced renovators can sometimes overlook simple guidelines when preparing their home for a profitable sale.
According to Archicentre – the building advisory service for the Australian Institute of Architects – homeowners can lose tens of thousands of dollars in profit by not paying attention to the following details.
Be in tune with your neighbourhood
Investors often make the mistake of renovating a property to suit their own individual tastes and discount the fact that they won’t actually be living in it.
There is no need to go over the top in making your home stand out from the crowd. A clean, tidy and freshly painted home whose style harmonizes with its neighbours will hold more appeal to potential buyers.
By following this advice, a young couple recently sold their investment property in Perth’s southern suburb of Parmelia for a massive $120,000 more than their purchase price.
They spent $12,000 on a new kitchen, floorcoverings and paint, paint and more paint. The brick facade was painted as well as paths, driveway, fences, all internal walls and ceilings.
The new homeowners happily moved into the freshest low-maintenance home in the neighbourhood and the successful renovators were extremely pleased with the result.
Avoid expensive imported fittings
Whilst we might desire top of the range appliances in our dream homes, investors who blow their budgets on expensive fittings can discover that they’ve also blown their profits.
Don’t underestimate the value of Bunnings, Masters and Kambos for sourcing brand new quality fittings and appliances at affordable prices. In many cases the latest European style trends are duplicated for a fraction of the cost.
A Sorrento couple had their Mediterranean styled townhouse independently valued prior to carrying out a cosmetic renovation. By keeping the renovation budget under $20,000 and sourcing modern products from the abovementioned stores they were able to bring their property into the 21st century and achieve a sale price of $200,000 more than the original valuation. Very happy renovators!
(NB. This photo is actually of a neighbouring town house whose style resembles the one in this example)
Remember that Aussies love the great outdoors
Not having an outdoor entertaining area can result in a lack of interest from potential buyers. This can mean higher holding costs over a longer marketing period or a lower end sale price for vendors.
A couple of experienced investors were surprised when their newly renovated property in Fremantle’s neighbouring suburb of HIlton was not receiving any interested buyers. Buyer objections indicated that lack of an outdoor entertaining area could be the problem.
After installing bi-fold doors from the lounge room to an attractive decked alfresco area buyers could picture themselves enjoying the indoor/outdoor area and the property sold one week later for $40,000 more than originally expected.
Leave large attractive trees
Another common renovating mistake is to slash and burn overgrown vegetation to offer a clean slate for prospective buyers.
How many times have you heard the proud owner of a new home boast about the large trees on the property they’ve just purchased? Large attractive trees can really add value to a home. Besides, removing large trees can often become a nasty, expensive surprise. A couple in Spearwood were recently quoted $14,000 to remove ONE tree!
A colleague recently commented that the strongest influence on her choice of new home in Meadow Springs was the presence of mature fruit trees in the back yard. She finds joy in sharing her lemons, avocadoes, oranges, mandarins and grapes with her friends and this has made her new house feel like home.
Never cut costs on electrical and plumbing
Archicentre says that one of the most costly mistakes is not using licensed tradesmen when carrying out electrical and plumbing works in home renovations.
As tempting as it may be to save money on electrical and plumbing by doing it yourself, the savings will not translate to profits in the end.
Always use licensed tradesmen. Purchasers will demand proof and, if not provided, settlement can be delayed. This can result in the vendor being charged for additional inspections and additional work to be carried out. Cover yourself by doing it right in the first place.
Remember to set a budget, stick to it and be rewarded with healthy profits!