When considering selling your property, one of the first questions you’ll ask yourself is (or should be) about how you might best present it to your buyers.
What should you do? How far should you go for the best bang for your buck? From the projects I’ve been involved with, it’s clear to me that making the right changes to your property will make it stand out for the right reasons in the eyes of your potential buyers; and this is the difference between a quick, profitable sale and one that takes months and months and still without a positive result.
I have a fairly controversial opinion on what parts of your property you should spend your money on when renovating to sell. Most renovation ‘gurus’ would say that it’s kitchens and bathrooms that sell homes. However, I disagree. My view is that this is an opinion that has been passed down/across from expert to expert and has not really been questioned enough.
I believe that when you sell, the areas that people emotionally connect with (in order of importance to them) are generally; Exterior front of the house, Kitchen, Interior living spaces, Exterior living spaces (depending on location of the property), Bathrooms and the rest of the house
That isn’t to say that bathrooms (and the rest of the home) don’t get a look in. They would typically get some level of loving, just a little less than other renovation experts might generally advise.
I have proven this theory time and time again. Think back to when you first saw the place you live in now (whether you own the home or are renting). The first parts of the property you probably saw (other than via photos perhaps) were the front of the house from the street, the living spaces and then the kitchen. These are the ‘first impression spaces’ where you can make people fall in love with your property (or not). As long as the bathrooms are of an acceptable appearance, buyers often will compromise on them in order to buy an otherwise all-boxes-ticked property.
Following are some nifty things you can do to create a property that draws crowds of buyers who are willing to spend well over what you might anticipate. I have covered only Exterior Front (street frontage) and Kitchens for this blog, but with 24 years of interior/exterior design experience and more than 600 clients so far, I have plenty of ideas, tips and tricks for every other space around a house too!
First things first though; Who your target buyers? This is really important to know before you begin your renovation. Are they young families? Are they families with teenagers perhaps? Maybe they’re empty nesters who have children and/or grandchildren visiting. Single mums? Maybe your target market are retirees. You may have one or two primary target markets.
If you need help to find who your target market is, call several real estate agents in your area or look at demographic statistics online. Many agents will say ‘anyone’ is your target market, but a good agent will have a handle on the primary demographic looking to buy properties in your area.
What do these buyers want and need in a house? It could be the little things like great security and a fenced in back yard for kids and pets to play. Maybe it’s a particular type of flooring that is suitable for their family and the climate in your area. Who is going to buy your house and what will they generally want in a home? How many boxes does your house tick now? Can you help them tick any more boxes with some simple, quick and inexpensive alterations?
How a property looks is important, but its just as important to appeal to the practical side of how a buyer is planning to live in the house. Don’t get me wrong; I love, love, love great interior and exterior design, but it is the balance between great looking and practical, use-able spaces that sells.
Exterior Front
Applying a lick of paint is probably the most basic and predictable thing you could do to improve a property. I don’t need to tell you that! However, maybe that means changing the colours entirely or only refreshing an already acceptable, but tired, colour.
I thrive on transforming houses with minor modifications (in this case with paint) and if you head to my Before and Afters page, you’ll see many examples of what my clients have done. You often don’t need to paint the entire exterior of a home, for example. I’ve transformed homes by modifying just the trim colours of the windows, window sills, guttering and fascias. Selection of the right colours (whether just the trims or the entire home) can accentuate and modernise your property in a way you may never have imagined.
Sometimes a major overall is required, but I don’t typically recommend this immediately prior to selling unless you are really confident of the return you’ll get.
Landscaping is another great way to update and modernise a property. This could be by thinning out overgrown trees and bushes or by adding in some new structured plans to give a clean and modern edge to the property.
Kitchen.
A new kitchen may be a ‘must have’ in your eyes; but it may not be in reality. Or it may really be a ‘must have’! Regardless; it’s a good idea to work out what your predicted sell price is going to be (vs current value/probable sell price) to ascertain how much you should be allocating to your renovation.
If you can afford a new kitchen and the house needs one, then that’s great. However, if you need to work with what you’ve got, then take heart; I’ve seen many many kitchens transformed for less than a few thousand dollars. When you are selling this is often the angle you need to take. I can’t stand cheap finishes (like DIY resurfacing of bench-tops for example), so my advice is always to do everything well, using good quality finishes. You might need to change fewer things in order to stay within your budget, and this is where the eye of a design professional like Hotspace can really help. Our role often involves identifying the key elements within a space that will benefit most significantly from modification – eliminating the need to rip the entire room to pieces to start from scratch again.
Remember through this process, the difference between renovating to sell (do a little to gain a lot) and renovating your own home (spend a bit more and make it fantastic) are entirely different kettles of fish.
With ‘fresh eyes’ assess your property to ascertain where and what will benefit most from an upgrade. Do what we do – don’t run with the heard. Research what the qualities are of the properties that sell quickest and for the most money in your suburb.
And of course, head over to our Before and After case studies page for plenty of inspiration from people who have successfully renovated and sold their homes more quickly and for more money than if they’d ‘run with the herd’ themselves.
Chances are you’ve heard lots of advice about how to get your house looking its best before you put it on the market. Certainly, aesthetic improvements are important (and a very big part of what we do here at Hotspace), but they are the icing on the cake in some ways. Making sure it fits the bill for your buyer from a practical point of view is just as important.
Generally speaking, if a prospective buyer likes the look of a house, but it doesn’t tick all the boxes from a usability point of view, it could be unlikely they will commit to buying. For example, they’re probably not going to buy a house without a bath if they have a toddler.
Of course, it’s not always practical to completely renovate a bathroom (in this case), but there are achievable and inexpensive things you can do to meet many of your buyer’s wishes.
Here are six steps to making over your home to suit your buyer.
Your target market.
An essential first step is working out who your buyer is. Many people skip this step because they assume their buyer is anyone who is looking to buy a house. However, if you look closely at different suburbs, you will find that most suburbs can be differentiated by the types of people who populate them.
For example, areas that have access to good daycare and schooling facilities usually attract families with young children and teenagers, whereas an inner-city suburb is more likely to have a higher proportion of people who are on dual incomes with no kids. Other suburbs will have a larger ratio of retirees, and some suburbs may have more single parents than others.
What does your buyer want?
You might have more than one type of buyer, so once you have defined your target buyer/s, make a list of what you think these buyers would want in a home.
If your buyer is a retiree, they might be looking for a house with a garden or a lawn that doesn’t need a lot of maintenance. A family with teenagers might be looking for good storage or an area for the kids to gather with their friends. Someone who works from home might be looking for an area to use as an office, and families with young children often look for houses with baths and a secure outdoor space for the kids to play.
Talk to your target buyer group.
If you’re not a member of your target buyer group, try to talk to friends, family and colleagues who are so that you can define the types of things they look for in a house. You need to get inside their head to find out what they place value on. After you’ve done your research, compare what you have, to what they want.
Choosing which practical changes to make.
Select the things you want to change based on whether they will add value for the buyer, yet won’t blow your budget. Not all changes will add value for every buyer in general, but the ones you choose to do should add value to your target buyer group.
For example, if your house is in a suburb that tends to have a lot of solo mums, then security screens and deadbolts might be something they deem necessary, and something that is not too expensive to do.
Check out the competition.
Your property needs to stand out from the competition. Check how your property compares to other houses for sale in your area and then aim to make yours offer more. For example, if other homes on the market don’t have ensuites, then adding an ensuite is something that could add a lot of value and demand for your property.
Making aesthetic changes.
Now that you’ve decided which practical changes to make, work out what aesthetic changes your target buyer prefers. For example, young families tend to go for a modern and minimalist look, while older generations are inclined to favour a variety of colours, surfaces, features, fixtures and fittings.
The changes may differ to what you like for yourself, but keep in mind that your buyer is the priority here.
Your makeover doesn’t have to be a complicated, full-on renovation that costs vast amounts of money. Many of my clients are renovating to sell and don’t want to spend a lot on a place they will no longer live in. My advice to them and to you is that it is more important to use your money smartly by making small alterations that fit a buyer’s practical needs than it is to spend large amounts on aesthetic changes.
Following the steps outlined will go a long way toward giving you the best chance of getting your makeover right. If you need more information, have a chat with us at Hotspace. We’d love to hear from you.
Jane 🙂
Buying an investment property, renovating it and selling for a profit can be an enjoyable and rewarding experience. It can also be a demanding and troublesome process. In order to avoid pitfalls and maximise your return, take a look at the following tips:
• Know how to calculate profit. Profit is whats left over when you start with your end sale price, less the purchase price, less purchase costs, less exit costs, less renovation costs, less holding costs and less capital gains tax.
• Draw up a schedule and plan your reno. Before even looking at properties, work out what you can afford in money and time commitments. Be conservative, and ensure costings are accurate. If you are borrowing to make the purchase, allow for interest rate increases and borrowing costs.
• Do your research. Find out what similar properties are worth in the same area, and find out what the growth potential is. Inspect as many properties as possible – you can pick up great ideas from these visits, and you’ll start to learn the market for the area you’re interested in. Take a look at the sale prices of similar properties, and get an idea of the type of return you may be looking at.
• When buying an investment property, beware of hidden dangers such as electricity issues, termites, damaged foundations and failing drainage systems. A thorough building inspection may detect some of these problems before you go through with the contract.
• Once you’ve purchased the property, work out the renovations achievable within your budget. If using tradesmen, ask around first. Word-of-mouth is a great way of finding out which tradies have a good rep, and those to stay away from.
• Stick to your budget. Be strict about not exceeding financial limits, otherwise you’ll eat into your projected profit margin.
• Decide if it’s worth being a DIYer or not. If you’re going to take time off from your job to do the renos yourself, it may be costing you money. Think carefully before committing yourself to an intensive reno project. Do you have the skills, are you fit enough, do you have the time? – these are all questions that need to be addressed. If you like reno work and will enjoy working on your weekends, go for it. If you aren’t that committed, you need to pay someone else to do the work.
• Talk to experts – real estate agents, mortgage brokers, financial planners, accountants (and yes, a renovation consultant like Hotspace!) can all assist you in making informed choices. Yes, the advice can cost money in some case (renovation consultant/designer, accountant etc), but it could save you much more!
