Is it worth renovating before selling?
Old wallpaper, unpainted walls, and flooring that could use some updating are among the "decorative" renovation tasks. They are not absolutely necessary, but they do improve the first impression. A property that is in good condition appears more valuable overall. Such decorative renovations are not expensive, but can still make a big difference in the final price.
More serious are defects that reduce the quality of living. Heating systems and insulation, for example, should be up to date. These renovation works are more time-consuming and expensive. They therefore deter many buyers who want to move into their new home quickly. At the same time, they also result in higher costs for the owner. So is it even worth investing large sums in renovation?
The prices for renovation work must be calculated carefully. Put simply, it can be said that
Renovating or refurbishing a property is worthwhile if the resulting increase in value is higher than the costs incurred. It is therefore important that you calculate the costs of all the changes you want to make carefully. For most owners, it is difficult to estimate how much the value will increase after renovation. It is therefore advisable to leave this estimate to an expert. This way, you avoid the risk of spending a lot of money on renovation that you will not recoup through the sale.
In the real estate industry, we generally speak of simple, normal, and upscale furnishings. With basic fittings, for example, floor coverings may be missing, the kitchen and bathroom may not be tiled, and the apartment may not have central heating. Normal fittings should include all the necessary features so that the new owner can move into the property immediately. Unlike high-quality furnishings, however, these do not have to be modern or meet the latest living standards. Experience shows that upgrading from standard to upscale furnishings increases the value by approximately 15 to 20 percent. However, these values are only a guide and do not replace a professional valuation.
Although a good calculation is essential, it can generally be assumed that the renovation work will be worthwhile for the owner. Otherwise, properties with basic fittings may not attract any buyers, or only those who are specifically looking for hard-to-sell bargains that they can renovate themselves at low cost.
Most buyers, on the other hand, estimate the renovation costs to be higher than they actually are and are therefore afraid of paying too much for the property. It is therefore often the case that owners who initially offer their property without renovation and are unable to sell it experience a positive surprise after renovation. The property is sold
Are you still unsure which renovation work is worthwhile for your property? Then contact us. We will be happy to advise you.