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Property Renovation Before Sale – Maximising Your Sale Price


Renovating Before Sale – Maximising your Sale Price

In the bustling Australian real estate market, selling your property at the highest possible price is every homeowner’s goal. A pre-sale renovation can significantly increase the property’s sale value, attract a wider range of buyers, leave less room for buyer negotiations, and ultimately lead to a faster and more profitable sale.


In this blog article, we’ll delve into the advantages of renovating your home before sale, emphasising the value of preparation for both the seller and the buyer and how to take advantage of that precious equity you’ve been banking on for years.


 

The Value of Property Renovation Before Sale


Modern Australian homeowners desire a seamless transition into their new homes, prioritising enjoyment over DIY projects. Ensuring your property is move-in ready not only saves buyers time and effort but also significantly enhances its appeal. A well-prepared home speaks volumes to potential buyers, creating an emotional connection that can lead to a higher sale price.


Data indicates that you should focus on your kitchen and bathrooms as key renovation areas to enhance your property's value.


The kitchen and bathrooms are two spaces where you spend lots of time, so it’s only natural that buyers tend to look at these rooms first when inspecting a property.


Well thought-out and executed kitchen and bathroom reno’s can significantly impact the property's future value - with industry insight indicating a serious positive return on investment.


However, based on industry data*, the average cost to renovate a kitchen in Australia was $21,356 and the average cost of renovating a bathroom was $17,779 with the costs quickly adding up towards $60K.

*2015/16 Housing Industry Association (HIA) Kitchens and Bathrooms survey.



So, even if you are sold on the idea of renovating - the question begs: “How can you afford to fund the project?”

 

Reno Now Pay Later Companies


This market segment is really starting to get some traction with lots of reputable building companies offering their services. With their Pay Later options, you can start work today and pay up to 4 months later.


Perfect when you are just about to list your property.



Renovate to Maximise Sale Price Unlocking Your Home Equity

Leveraging off the equity in your home to obtain funds today, which enables you to undertake necessary improvements immediately is also a great way to get the job done.


Property Equity Analysis is an important factor when it comes to securing funds for pre-listing renovations. With sufficient equity, you can take advantage of flexible lending opportunities and reap the benefits before settlement even occurs.


 

A Simple Equity Assessment Process?


Here's a hypothetical case study of how pre-listing renovations can maximise net sale proceeds.


Let's say your home is valued at $1,350,000. You decided to carry out some renovation works to your kitchen and bathroom - the costs of which totalling $64,770 (including lending costs). There are no upfront payments or expenses on your part as these are covered by the lender.


As a result of the enhancements, your property sold for $1,495,000 - that's a $145,000 increase in net value! The renovation costs were repaid to the lender at settlement - no out of pocket expenses for you. Deduct the renovation costs and all other sale costs, and you've gained $76,230 simply by boosting the value of your home prior to listing.


Homeowner-reviewing-pre-listing-improvement-strategies



Let’s face it: Renovating before you sell to maximise your sale value is not for everyone.


Renovations are inconvenient and incredibly dusty! But if you are looking for a serious payday and a reward for all those years you went without and sacrificed so much to pay down your mortgage to the bank - then it’s definitely worth the effort.


For more information on how Elepay can help you Unlock Your Equity in your home to obtain pre-listing funding, contact 1300 019 417 or visit www.elepay.com.au.



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