Improving Property Value

Where should I spend cosmetically to get the best price when selling my home?

By May 1, 2022 No Comments

One question we get a lot of times from home sellers is whether they should spend extra money improving their home before putting it on the market for sale.

The driver behind the question is always – how much of an increase will they get in their final sale price *IF* they spend money increasing the value of their home.

In this video, I discuss the 2 main areas that increase value when improvements are made to a home, but also whether it’s actually worth making those improvements or not.

In particular, if you have recently spent money on improving your home in the last few years, is it worth spending more or not?

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.

Additional Resources

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Transcript:

So typically, kitchens and bathrooms are huge drivers in popularity amongst buyers.

So essentially what it boils down to as an agent, one of the things that we’ll say, if the kitchens and the bathrooms have had some money spent on them and they have been brought up to current trend, and they’re beautiful, we will say the money has been spent.

So whether you’ve renovated your kitchen let’s say two years ago, but it’s still on trend and it’s still in extremely good condition and all those sort of things, but you haven’t got your carpets done.

The reality is that the buyer may have wanted brown carpet and you may have put in beige carpet.

They won’t see the value of that ’cause to them, that’s not what they want, but from a agent’s point of view, if we can turn around and say, the big money has been spent, the rest of it is now just cosmetic into your taste.

That’s money well spent.

But again, it all boils down to the market conditions of the day, what you’re trying to achieve price wise, and also the time.

So at the moment to get renovations done, at the moment post COVID, you’re running out of time.

So we’ve got to, we were talking about timing of the market with what’s all happening throughout 2022.

Some of the tradies are not able to actually get to your job.

You may not even be able to get one done in time before the market shifts.

So at some point, you have to weigh up, what is the most important thing? Is it time? Is it money?

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