Perhaps one of the most common questions I get asked by home owners considering selling is whether they should make improvements to their property before selling.
For example, renovating the kitchen or bathroom, etc.
The idea being that if the home is improved significantly, then it has the potential to increase the final sale price, bringing the vendor more money in the end.
And of course, when that sort of question is asked, the next question to go with it is: “How much to spend AND how much is too much to spend?”
In this video, I discuss both (related) questions and give you my thoughts on the topic.
This video segment was pulled from a long interview I did back in Feb 2022, where I answered a heap of frequently asked questions (FAQ) about real estate.
Once you’ve watched the video, let me know your thoughts and any extra questions you have on the topic in the comments below.
Note: The video was filmed in portrait mode rather than landscape, which is why it is narrow rather than wide. For the best viewing experience, I recommend you click the Full Screen mode button.
|Get monthly property sales figures for your suburb.||Considering downsizing and want to avoid the common mistakes made?||Want our "Top 30 Tips" checklist for improving your property's value for sale?|
Without knowing the locations of the properties, without knowing details about the properties, the over capitalizing advice comes with a massive disclaimer, like massive, because if you put, if all the other homes around you, median prices are X and then you go and spend double that on yours and expect that to then get recouped, you may have a problem.
One of the things I will say though, is that if you are making lifestyle improvements to your property, so COVID saw home become really, really, really important, and the environment that we wanted to live in them, and the amenities that we wanted to have in our properties and in our homes became high priority.
So if you are thinking about adding, if you’ve got a decent size backyard and you’d like, you are a tradie, or you’d like to potter and tinker and all those sort of things, and you want to add a shed, add the shed, so long as you still have enough room for a trampoline, for instance, or just look at it as a holistic thing.
That being said, if you are adding lifestyle things that are going to improve your life, then they will likely improve the life of someone when they’re wanting to buy as well.
So lifestyle additions to properties are generally something that are very safe when it comes to improvements that generally won’t overcapitalize.