Renovating For Sale

Preparation for Market

Home Renovating, Flip or Flop?

There is a need to be mindful of not overcapitalizing a property, especially when it is about to be placed on the market for sale. In essence this means that you need to be aware of what cost is being invested into the renovation vs the estimate of potential value that might be returned. In this article I am specifically targeting home owners who are considering the route of doing a quick renovation to spruce up the property before placing it for sale.

It is often true that we seem motivated to get those pesky jobs, such as fixing the leaky facet or nailing that fence paling back into place, just in time for sale. (I've have been guilty of this a few times myself).

Summary List

  1. Create a list of all the items you feel must be fixed and the items you want to improve / freshen up.

  2. Identify which of those you can do vs the one's you need to get someone else to do.

  3. Work out the timeline that all the items would need to be done.

  4. Understand what you can afford. This becomes your budget.

  5. Get quotes on labor, materials, council fees & approvals (if any) etc to work out what each of the items on the list will cost.

  6. Consult with your agent about your plans and get access to some insight on the best way forward.

Budget - Investment vs Return

Prior to taking the plunge at Bunnings, buying the latest trend in paint colors and brushes, hold off and do a critical assessment first. It is important to aim to get the biggest return on investment.

Create a list of the items you feel that you would like to have done, making sure that they are categorized into must do items and nice to do items. Place a budget down for what you feel you can afford to spend. Factor in which items are one's that you are able to do vs items that a qualified laborer needs to complete. Finally, map out your timeframe to have all these things done. Example: You could have a target to have the property on the market at the start of Spring, which means you would need to have all the work completed at least two weeks prior to the start of season. 

Realestate Agent Advice

Engaging a real estate agent early is certainly advisable as they have a wealth of experience in the area and should be able to quickly convey what seems to sell well in your area.

It's best to have an idea of what the comparable surrounding properties for sale are fetching on the market, how they were presented and what they are selling for. Once again, the agent you sign up with should be able to provide you with all this information.

Ultimately, your real estate agent can help to talk you through the items you have called out on your list, to see whether or not it is worth investing the time, energy and money in fixing things up. 

Helpful Hint

There are a lot of online services out there that offer you a chance to get centralized, cost competitive pricing in your local area by local businesses. 

If you have a smart phone you can download an app called HiPages or go to their website

They are a top rated Australia wide site that allows you to post a job for your local area and have tradie's provide you an expression of interest and a quote for service. 

There are a few sites out there on the market that provide a similar function. My suggestion is to try them out.  I was introduced to this by my sister who had first hand experience with using HiPages, which is why I mention them.  She had moved into a new place and was keen to get an electrician out and a handyman to build some shelving. She used the quoting HiPages system and had the job, quoted and done within the same week. It really can be a cost competitive, efficient way to get jobs done quickly and professionally.

Property One Bayside

Vendor Home Preparation Guide

Although all the information supplied may cause you to feel a little daunted about embarking on the journey of selling your home, just remember that you don't have to do absolutely everything. These are just some of the items to consider. It's truly up to you to make sure that you do as much or as little as you feel is required. We just want to ensure that we have everything in place to support selling your home for the best and right price.

We encourage you to leverage the support of family and friends to help you achieve your goals. Organize a BBQ - working bee day, enlisting your circle of friends to come and provide a helping hand. Use the opportunity to plan what you want done and give that to everyone so they can volunteer for the tasks they feel they are capable of doing. Every little bit helps.