Hi. I’m Ray Talati from Chadwick Real Estate, and one of the questions that we get asked the most is to renovate or not to renovate, and whether you’re thinking of renovating to stay and add value or whether you’re thinking of renovating to sell, there’s a couple of things that you want to consider in your decision making process.
Purpose and Timing
What are you looking to achieve out of the renovation? The second factor is timing. Renovations don’t only cost money but they generally take a lot of time as well, so if you’re renovating to stay, you generally have the luxury of a little bit more time. If you’re renovating to sell, you can often be limited by certain time constraints in terms of when you need to get the property on the market or what do you need to get the property sold by, so this is where it’s very, very important to understand what renovations are going to add the most amount of value in the shortest amount of time for the most appropriate investment.
The third and arguably most important factor of any renovation is to check your margins. As we said, people are going to be renovating for different reasons, looking to achieve different things but dependent upon your budget, one of the most important things to keep in mind is that you never want to be investing more in the renovation than the amount of value that you are adding to the property. As a general rule of thumb, you want to be spending $1 to be making two or three. You never really want to be spending money on your renovation if you’re not necessarily going to be getting that money back. That’s where we start to get into the territory of over capitalising, which is very unnecessary, could hurt your pockets. You’re not necessarily going to get that money back.
When renovating, you need to take your owner’s cup off and put your buyer’s hat on and think what is going to appeal to the largest target market. When selling a property, there are generally three factors, which affect your final sale price: location, presentation, and marketing strategy. Luckily for you, you are in control of two of those factors, marketing strategy and presentation. If you’re curious to learn about what type of renovations will add the most amount of value to your home, appeal to the largest market possible, and cost you the least amount and investment, then please feel free to give me a call today.
Have a question about the renovation of your home? Speak with Ray today.