Renovate or not?

How do you decide whether to renovate before selling or just sell as it is?

 

What will you be competing against when it hits the market? Lots of refurbished properties or entry-level doer uppers?

Select the market where you have least competition/comparables and will create the most interest for buyers.

 

Check the comps for the area for at least the last 4-6 months. If there's a trend where 3br renovated houses on 600m2 blocks are going for $80k more than similar unrenovated then you've got to figure out the cost to bring it up to that standard and go from there.

What's the area and how much work needs to be done?

 

Depends on the property, how much you need to do and what the property is for.

I did nothing to our house in Melbourne when we sold because it is a demolition job to make way for a three townhouse development. Not worth spending any money on.

Conversely, my parents painted and put in new carpet and flooring along with a good clean inside and out. Definitely worth it for them:-

Quick makeover for sale

 

Who is the buyer?
If it's a development block, I wouldn't waste the 18cents on petrol for the lawnmower to cut the grass.

 

Ability to manufacture CG, time & budget.

Simple.

 

Well, I would say it's a development block? Enough for two semi detached at least... on a 900sqm block.

But the thing is I reckon if I don't do anything and just sell it now I'd prob only make 10% net after 7 years of holding... after all the costs. But if I spend $50k on renovating it, I think it would prob be 15% net at least? But just not sure if it's worth the time and effort for that extra 5%.

 

We had a place that we'd held for several years, with the same tenant. We had only done minimal maintenance, as the tenant had so much stuff we couldn't do much more than that! Coming to sell it after the tenant left, the agent suggested we'd get about $300k for it in the condition it was in. We spent $30k on a reno (4-6 weeks) and after a week on the market sold for $400k. In our case it was well worth it.

 

5% of 10k = no

5% of 1mil = probably

Ask a local agent.

 

Im not a reno expert but I did read you should aim to make $2 from every $1 spent so do the maths and decide if its worthwhile.