As your real estate agent will tell you, when deciding whether to renovate or sell, the two main things to consider are your own situation and what the housing market is doing at that time. But it’s not as simple as “I’m ready to sell and demand for properties in my area is high” or “I feel like renovating and the market is slow right now, anyway”. So, let’s break things down further…
Time and Timing
If you’re keen to sell your house or apartment because you have a pressing need to use the money for something else, there may not be much that will sway you from that course of action. However, it is still smart to examine the direction in which the market is moving. If prices are steadily going up, for example, and you can hang on a little longer, it might be worth the temporary inconvenience for a significantly greater return.
Additionally, there tend to be better periods of the year for selling, related to major events, holidays, the school year, etc. (Your real estate agent can advise you of what are traditionally the best months to sell in your region.) Think about whether the renovation process you have in mind will finish inside or outside one of these periods.
Cost Versus Return
Beyond necessary repairs, there’s no point making changes/additions to a property unless they are going to add more to the eventual selling price than what you spend. Some renovators get carried away with making improvements that they themselves would like, but ultimately, it’s only the buyer’s taste that matters. If they place no value on a “little touch”, however stylish, in monetary terms it wasn’t worth doing. Your real estate agent can advise you on what’s worked well in similar situations in the past.
Who’s Your Target Demographic?
Again, remember that it’s not about what you want, it’s about what’s going to appeal. If there’s an influx of professional young couples into your suburb, then a home office is probably going to be a bigger selling point than a kids’ rumpus room. On the other hand, a new school being built in the vicinity may be a hot tip to angle your renovations towards making the abode more family-friendly.
And don’t be afraid to stand out. If every available property like yours is offering the same basic setup/features, the right reno can really separate you from the rest. As always, the best person to ask about who you should be targeting and how is your real estate agent.
Other Factors
The above points are among the many to consider when deciding whether to renovate or sell your house or apartment, although they do all relate in some way to your current situation and/or to the market. Even if everything seems right, it could be worth waiting a tiny bit longer to see what a very similar property fetches – perhaps the asking price you are considering is actually too low. (You can check with your real estate agent how many interested parties there were.)
It must also be remembered that renovations are a learning experience. If you’re planning on renovating subsequent properties as a career or sideline, it could be worth enduring delays and even the odd minor blunder now to gain knowledge and skills you will use repeatedly in the future for your financial benefit.
Weighed up the pros and cons and ready to sell? The professional team at Abode Real Estate in Cottesloe can help. Contact us by calling (08) 9381 9111. We look forward to using our wealth of industry experience and commitment to personalised customer service to exceed your expectations.