Carefully planned expenditure on a house before it’s listed can certainly lift the sale price. Some people can even make a comfortable living from buying run down properties, doing them up and then selling them on to happy buyers.
However, not all expenditure will necessarily result in a higher resale value. For example, if a property is situated in an area ideally suited for townhouses, then any significant expenditure on the existing house could be wasteful, as most buyers for that property would likely be more interested in the land value.
Expenditure falls largely into two categories: general maintenance and structural changes. General maintenance includes repairs such as repainting, replacing worn fittings such as water heaters, and landscaping. These expenditures are small compared to the value of the land and it’s important to attend to them regularly so the value of the property doesn’t decline.
They are the easiest and most cost effective means of lifting the value of a home prior to sale, particularly if the result is clearly visible. Lovely garden improvements or fresh paintwork both inside and outside the home can make a
big difference. Even small improvements in wet areas can make an impression on buyers. Replacing old, unfashionable tiles, shower screens, mirrors and tap fittings with modern ones can look a million dollars. If you have the budget for it, new bench tops, tap fittings and splash backs in the kitchen can add a real ‘wow’ factor.
The other category of expenditure is with structural change to the home or major earthworks in the yard. This includes things such as costly extensions, a quality al fresco area or the installation of a pool.
Keep in mind that the sale price of a recently extended home may not always fully cover any major expenditure on a home. The key to achieving a higher resale price for a property is to spend money on work to increase the number of potential purchasers.
Other attractions for potential buyers and needing only modest expenditure, might include air conditioning in a living room, nice looking paving around parts of the home, a lock-up garage, reticulation throughout the garden or data points in the lounge and study areas.
If you would like advice on the selling process, please contact us anytime. We would be more than happy to discuss options tailored to deliver the best outcome for your property.