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Moving - there probably isn’t anything more stressful in a homeowner’s life. And, yes, that includes running around after the kids and trying to keep the spark alive in your relationship! If it wasn’t hard enough to find a suitable house, you’ve got to sell yours before you can move in (usually).
This is by far the hardest piece of the puzzle because buyers are very particular. You’d love to hire an estate agent, list it online, and sign on the dotted line before they change their mind. However, covering every base before tying up a property sale is almost mandatory. So, sorry to say this, but you’re going to need to renovate.
The idea of speculating to accumulate won’t always appeal, not when you require every penny for the move. Still, it’s challenging to pull the wool over the eyes of buyers or convince them to invest when the property isn’t perfect.
Here are the reasons why, and why fixing up your home before selling is a wise choice.
A Cold Market
For the most part, the market is hot for buyers and cold for sellers. Of course, the COVID-19 outbreak has weakened your position and may continue to do so if there’s a recession. Even so, buyers have a lot of leverage because there are many more options available to them in 2020.
After all, the average person moves home between eight and ten times, so the supply is never low. Plus, online listing sites mean it’s easier than ever to view several properties and make a bid. There are times when demand will be so high that you’ll hold all the cards, but it hasn’t been that way for a while. Therefore, renovating or making repairs in advance could be the investment that encourages a person that’s on the fence to buy your home.
You can figure out if the market is in your favour by asking an estate agent that you trust. Alternatively, look back at previous sales and their asking prices, as well as how many listings didn’t sell, in your neighbourhood.
Value-Added Investment
If you’re worried about not securing a return on your investment, you should remember that renovations add value. A conservatory, for instance, will bump up the house price by as much as 5%, which is £5,000 for a £100,000 property. A loft conversion goes one further and increases value by a whopping 15%.
The trick is to choose your renovation wisely, as not every add-on will result in more money. Some are notoriously bad investments, such as a pool. In the UK, especially, there’s no demand for a swimming pool as the weather is never nice enough! Then, you have to include the maintenance resources, and the project results in a loss. An excellent rule to stick to is to add extra space and open up your house.
Buyers love room because A) nobody wants to live in a shoebox, and B) it’s a blank canvas. With an accessible attic, basement, or study, they have the option to convert it into anything they want, from a spare bedroom to a home gym.
Photo by Yoann Siloine on Unsplash
Cosmetic Touches
One reason fixing up your interiors and exteriors before selling isn’t as bad as it sounds is down to cosmetics. There’s no reason to go all out and add a conservatory if you don’t think you’ll recoup the investment because kerb appeal is the key. Buyers fall in love with a property as soon as they roll up in their car and close the door. Without kerb appeal, your home isn’t going to stand out from the crowd.
Thankfully, it doesn’t take a lot of money or effort to ensure your property shines from the outside. Often, a new coat of paint is all it takes to transform most house for sale as the gloss is eye-catching and pretty. Pair the colour and texture with the season - light and bright in the summer - and you’re onto a winner. Next, it’s time to focus on door and window frames. They take a lot of battering and appear old and fatigued. You can either replace them or add another layer of stain to remove any blemishes.
Finally, get the mower out and cut the grass. This is a particularly helpful hack if you have a front lawn as it will make the house appear neat and classical.
Discount Repairs
Imagine someone tried to sell you a broken or cracked product. Would you accept it at full price or demand a price cut? The answer is the latter because you wouldn’t be getting value for money. Houses are the same. When a buyer spots repair work, no matter how small, they’ll deduct it from the listing price. So, a property that’s worth £150,000 soon drops to £140,000. And, that’s before you’ve paid rates and estate agent fees.
The last thing you want to do is to give them an excuse to haggle. Buyers do it anyway because it’s an unwritten rule of real estate. Still, fixer-upper homes aren’t in a strong position due to their flaws. Eliminating them allows you to stand strong when the negotiations begin.
In short, taking the time to complete repairs will save you money!
Photo by Julie Molliver on Unsplash
The Competition
Selling your home and buying a new one is a competition. You’re fighting against everybody else on your street who is trying to sell their properties as quickly as possible. If you don’t play the game, you run the risk of losing. With that in mind, it’s essential to do what all rivals do - analyse each others’ moves and motives.
Does a similar house to yours have an upgraded kitchen? Does it make your home appear smaller and less appealing? If so, you should follow their lead, even if there is nothing wrong with it. Their estate agent will use it to their advantage to discourage them from any other property, including yours.
Keeping up with the Joneses is more than a cliche!
Where do you stand on renovating before selling? Do you agree?
