Strategic Renovations: The Key to a Prompt Sale and Higher Home Value
At times, it may seem that the ideal upgrades to make before selling a home are basically the same from one home to the next. However, the best improvements any homeowner
might choose are highly dependent on the home’s unique needs, its competition nearby, and the homeowner’s budget and expectations. Understanding how these factors come
into play and hiring a professional to help make the practical decisions, ensures a better result and return on investment.
Determining Buyer Needs
There is a target demographic for every type of home, from the cosiest cottage to the most expensive mansion. Although buyers certainly are not a monolith with identical wants and needs, it is possible to get a sense for what buyers are looking for in a particular type of home. The largest growing segment of home buyers are focused on those in the Millennial generation, primarily women, and looking to get a home of at least three bedrooms at a rate $50,000-$100,000 less than the national average. There may be a great deal of variation on this average, but it gives sellers a good indication of the minimum standard they should plan to meet. Home on the lower end of the price range may sell more readily with fewer improvements, while more expensive homes often
attract buyers looking for luxury upgrades.
Assessing the Competition
With a few general rules about buyer expectations, it is useful to take this information and apply it to the likely competition in the area. Comparable homes, often referred to as “comps,” are based on the neighbourhood, square metres of the home, property size and other factors. A real estate agent can help sellers to create an image of the average home for their area, as a way to determine which kinds of improvements will be most attractive to buyers, and maintain or even exceed the predicted sale price. Giving buyers precisely what they want and what they expect is the quickest route to the best return.
Selecting the Best Renovations
Since meeting or beating the competition is such a subjective experience, the right upgrades to make really depend on what each home needs to put its best foot forward. Houses that are new or have been newly renovated might only need a few touches. By comparison, a home that was built decades ago and has only sustained minor improvements since then might require a more significant overhaul. Kitchens and bathrooms are usually a great place to start since they get such heavy use within the home and can appear outdated quickly. Homeowners who want to dramatically improve their ability to compete might consider extending the home or possibly add a suite that could provide additional income.
Identifying the Scope of Each Project
Fortunately, every project has a lot of choices to determine the full scope of the renovation. Bathroom upgrades range from installing a new bathtub or changing the cabinet doors, to building onto the home to create an entirely new bathroom. Although the extent of the upgrade usually depends most on the seller’s budget, it also relies on timing and what the seller envisions in the home for sale. Some sellers may have the schedule and inclination to accommodate a much larger renovation, with the desire of capturing a higher selling price.
If a homeowner is going to invest possibly tens of thousands of dollars into upgrades before selling, making the best investment is common sense. Analysing the market, the typical buyer’s expectation for a similar property, and the renovations the home needs based on that criteria provide sellers with vital information to guide their decisions. With this research, sellers can identify the best upgrades to earn a quick sale at a better price.
SmartReno can help you find the right contractor for your Interior renovation project