Renovation before selling real estate = higher selling price?
Like the location of a property, its condition also influences its value. The purpose of renovating a property is to repair serious defects. In contrast, refurbishment is about improving the appearance of the property. Measures include, for example, wallpapering, painting interior walls and the façade, or replacing the flooring.
The well-maintained property
Real estate experts emphasize that renovation generally increases the attractiveness of a property. The more attractive a property is, the easier it is to sell at a good price. Especially if, for example, the location of a property is not ideal, the appearance and ambience must be more convincing. Experience shows that prospective buyers are more willing to compromise when it comes to well-maintained properties.
The unkempt property
Conversely, real estate professionals have also found that prospective buyers are often skeptical about properties in need of renovation and often unconsciously suspect further defects or problems. Emotions play a major role in real estate purchases. Even with immaculate properties, potential buyers occasionally back out simply because they don't have a good impression. Other buyers, on the other hand, use this as leverage to negotiate the sale price down. In addition, prospective buyers often estimate the costs of renovations to be higher than they actually are.
How much should the renovation cost?
Of course, renovations are not worthwhile if they end up costing more than they add to the sale price. It is best to consult a professional real estate agent to find out which renovations will affect the sale price. This will allow you to estimate how high the renovation costs are likely to be. Once you have an overview, you can decide which measures you can carry out to ensure that the renovation is also financially worthwhile for you.
A quality real estate agent in your area can best tell you which measures will really pay off before selling your property. Thanks to their many years of experience, they know the local real estate market and know which renovation measures are important to the target group for your property. In addition, they will determine the value of your property and can tell you how much a renovation would increase its value.
Would you like to know how renovation will affect the value of your property? Contact us! We will be happy to advise you.
 
Further information can be found here:
- welt.de: Expensive renovations are usually not worth the money
 - badische-zeitung.de: Optimizing your purchase through renovation or refurbishment
 - handwerksblatt.de: Renovating before selling your property
 
 
Notes
For reasons of readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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