Rich from renovations – the dos and dont’s of renovating to sell
Have you ever found yourself daydreaming about the idea of making money using the buy, renovate and sell strategy? If so, you’re definitely not alone. Lots of people are captivated by the idea of buying a run-down property, renovating it and then selling it for a tidy profit.
Renovating to sell can definitely make you money, but it’s never a sure thing. For all the success stories you hear, there’s bound to be countless more with, let’s say, not so happy endings.
When it comes to renovating to sell, there are certain things you should and shouldn’t do to increase your chances of success. Here’s a few tips.
Do focus on the kitchen and bathroom
Check out virtually any renovation website, magazine or TV show and you’ll find out that renovations to the kitchen and bathroom will provide the best return on your investment. These are the areas that impress most when buyers come through your property.
Do look into the local property market
Check out other properties in the area you are thinking of buying in. This will give you an insight into how much buyers are willing to pay. These insights will be invaluable when it comes to setting your budget. You will also get a sense of how strong or weak the market is depending on how quickly it takes properties to sell.
Do get professional help or advice
Doing a lot of the hard work yourself can make for cheaper renovations, but getting things wrong could end up costing you a lot of time and money. You might be clued up from watching the latest TV renovation show but it doesn’t make you an expert. If you don’t have the expertise be sure to call in someone who does.
This has to be the number one rule when it comes to renovating to sell. If you spend too much on the renovation you’re going to find it very hard to come out ahead. There are a number of things you can do to avoid overcapitalising. Firstly, make sure you have done proper research into the local property market. Secondly, set a realistic budget and do everything in your control to stick to it. Allowing a little bit extra to cover unexpected expenses can also help you avoid budget blowout.
Don’t limit your potential market
It’s important to make sure the renovations you do and the materials you use will appeal to a wide range of buyers. Think about neutral colours and finishes that won’t put people off. Bold colours or fittings may limit the number of people interested in buying your property and ultimately reduce the amount of money you can make.