Top tips to renovate for profit
To renovate can be both an exhilarating and draining process. While the idea of transforming a space is exciting, knowing where to begin may be daunting. Especially if you’ve decided to renovate for a profit.
You may have plenty of ideas about what designs and features you like in a home, but will they be the right ideas to make you money? If you’ve decided to take the plunge and renovate a home for profit here are a few tips to keep in mind.
1. Find the right real estate agent
Finding the right real estate agent is the first step in the process of renovating for profit. You need to find someone who you gel with. Someone you can work with on a professional level, who understands your ultimate goal – profit.
Your real estate agent will be able to give you tips on the area your home is in, market trends and who your perfect buyer may be. Here are some questions you may want to ask:
• What is the current market value of my home?
•Who are the buyers in the area?
• What additions can I make to my home that will increase its value?
• Who are the buyers in the area?
• Are there any non-negotiables that my home needs (e.g. air conditioning, a dishwasher)?
• Are there any trends you’ve noticed in design/layout that I should look into?
2. When you renovate, know your buyer
Knowing your buyer is essential! Once you’ve found your real estate agent get to know your buyer.
This is a step that cannot be missed and is something many may struggle with. If you’re renovating for profit you’re not renovating for you! While you may love checkered tiles in the kitchen, your buyer may not.
It’s important to keep the buyer at the forefront of every design decision. For example, a young family may be more interested in shared spaces, such as the living room, dining room, or yard. A family with teenagers or singles with housemates are probably interested in multiple bathrooms and large bedrooms. A young couple may be more interested in a fenced property that is pet-friendly.
Work with your real estate agent to identify your target audience. Before you finalise any design elements think:
• Whose home will this house be?
• Is this feature important to the buyer?
• Will the buyer value this over another feature or design?
3. If you renovate, you must research designs
Once you’ve narrowed down your buyers wants and needs you can begin researching designs to fulfil them. While the seasons hottest trends may be a huge drawcard for some buyers it’s often best to stick to a timeless design.
Know the latest trends and ask yourself, will this still be popular in 6 months, a year or even 10 years? Black faucets and accent feature walls may be all the rage now, but if they aren’t timeless they may not help you make a profit.
The idea may be to renovate and sell quickly but that isn’t always achievable. There are a number of factors that affect how quickly you can sell your home, many of which are out of your control. If you pick seasonal design trends you run the risk of being ‘out of date’ if your house takes longer to sell.
It’s easy to get wrapped up in the latest style but ensure you research what’s popular and ask yourself is this timeless or just a fad?
4. Ask the experts, who look at renovations all the time
Now you’ve got the real estate agent, you know your buyer and you’ve researched your design, it’s time to get to work. Before you purchase any materials ask the experts for guidance and tips.
Talk to builders about what materials you need and be savvy with your budget. While you often get what you paid for in terms of quality, you may be able to find a bargain second hand or purchase at trade prices.
An interior designer also has a wealth of knowledge to share. Not just about the home designs that are worthwhile but also about the best way to go about implementing your designs. They will be able to help identify which design elements will add value and which are just draining the bank.
John Halloran 0407 903 654
Exceptional Finance East Brisbane