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Is it Worth Improving Your House Before Selling?

With rising costs of living and mortgage stress, many Aussies are asking themselves “Is it Worth Improving Your House Before Selling?”

Improving your house before selling can be worth a lot of extra money in your pocket, depending on various factors such as the current condition of your property, the local real estate market, and the potential return on investment. Here are some considerations to help you decide whether its worth improving your property or simply selling it as it:

Market competitiveness: Assess the condition of your property compared to similar homes in your area. If your house is outdated, in need of repairs, or lacks desirable features, making improvements can help it stand out in a competitive market. Upgrades can make your property more appealing to buyers and potentially lead to quicker offers.

Return on investment (ROI): Evaluate the potential return on investment for the improvements you plan to make. Focus on renovations or upgrades that are likely to provide a positive impact on your property’s value. For example, it doesn’t make sense to add a $20,000 hot-tub if it will only add an extra $10,000 of value. Consult with a real estate agent or professional appraiser to get an estimate of the potential value increase resulting from specific improvements.

Cost-effectiveness: Consider the cost-effectiveness of the improvements. Prioritise low-cost, high-impact projects that can significantly enhance your property’s appeal. For example, fresh paint, landscaping improvements, and minor kitchen or bathroom updates can often yield a good return without breaking the bank. Proper cleaning and staging can also amplify some basic improvements.

Buyer expectations: Research what features or upgrades are in high demand among buyers in your market. This can vary depending on location and buyer demographics. For example, heated towel rails might be a good idea in a cool-climate region. Understanding buyer expectations can help you make targeted improvements that align with their preferences and maximise the appeal of your property.

Inspection and appraisal issues: Anticipate potential issues that could arise during the inspection or appraisal process. Addressing any known issues upfront can prevent them from becoming deal-breakers or affecting the sale price negatively. Repairing structural issues, fixing leaks, and ensuring systems are in good working condition can help instil confidence in buyers.

Time and budget constraints: Consider the time and budget you have available for improvements. If you’re on a tight timeline or have limited funds, focus on smaller, cost-effective projects that can still make a noticeable difference. Set realistic expectations and prioritise improvements based on their impact and feasibility within your resources.

Ultimately, the decision around “Is it Worth Improving Your House Before Selling?” depends on your specific situation. It can be beneficial to consult with a real estate agent who is knowledgeable about your local market. Using an App such as bRight Agent can help you to get a local agent whilst significantly reducing their associated commission and fees. Agents can provide insights into buyer preferences, advise on the potential ROI for various improvements, and help you make an informed decision based on your goals and budget.