Your renovation budget: This is where you should start, and stop...

On 21 November 2017 in Property, Property Investor, Real Estate, Tips, Budget

Your renovation budget: This is where you should start, and stop...

There is no denying that property renovations are a lot of facts and figures, and it can be at times hard to know how much you should spend. When preparing it for sale, the aim of the game is to enhance the place enough to get the highest possible return. Quite often it starts as an update to a few small things, however as more questions are raised, more jobs are also added onto the renovation bucket list.

Before you know it, the makeover idea has exploded into an extensive and expensive renovation. The big-ticket items end up taking priority, which means the entire budget has been exhausted and they may still not have a property that people want to buy. When this happens, the odds are that you aren’t going to make your money back on the sale, unless you have bought it at a bargain price.

How do you know where to start and when to stop? Should you spend your makeover budget in one room, or spread it around?

If nothing in your house stands out as being an essential, start by getting the outside right, followed by the kitchen, interior living space, exterior living space and finally the bathroom.

People are often told that kitchens and bathrooms sell houses, which could be true to an extent. However, the front exterior of the house is a vital element and it is the image that potential buyers see on the internet or when they drive past. If they don’t like what they see on the initial photo, they may not investigate further or come for a look on inspection day.

Kitchens should be next on the list, but this generally can get away with a cosmetic update rather than a full renovation. Keep a list of what is absolutely necessary so that your costs don’t spiral out of control.

Find out who you target buyer is and what they look for in a house. For example, if it is a family home, they may prefer a tidy en-suite over a modern main bathroom, or be focussed on a main living area rather than bedrooms. Families generally opt for functional spaces over perfection.

If you aren’t sure about who your target buyer is, it is best to contact a real estate agent. Ask them to come in for an appraisal and let them know what you intend to fix up. Discuss with your agent what your buyer will want out of a renovation.

Finally, approach your renovation from your buyer’s perspective. The makeover you would do for a buyer is generally different to the one you would do for yourself, so keep this in mind. 

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