Everybody knows that when you renovate a house, you increase its value and you maximise possibilities to sell it. If the property is in good condition, remodelling works have been done and it is also in a good location, selling it will be a piece of cake.
The state the property is in is very important for the property valuation, and it could positively influence the selling price, but do you know what to invest in when renovating a property and how much to invest?
Today, this article by ShBarcelona will tell you more.
Related article: How to Sell Your Home in Barcelona?
How much to spend on renovations before selling an apartment
Before you start remodelling your home, experts recommend investigating the price/m² of properties in the same area. Don’t forget to distinguish between renovated and not yet renovated apartments.
Studies have shown that you should invest 50% of the difference between the two prices for higher profitability and a satisfactory profit margin.
An example: if your apartment is in a neighborhood with medium-high rental prices, and the price difference between renovated and not yet renovated homes is 1000 euros/m2, then a guideline is to invest 500 euros/m2.
Don’t forget, however, to prioritise any works you want done in the apartment, and always invest in what tenants value most: kitchen, bathroom(s), floors and walls. Updating the apartment changes the way it looks and freshens it up.
When investing in upgrading the apartment, always consider fundamental items that needs to be changed, but also remember the essentials to makeover a property:
- First of all, paint walls and improve floors to emphasise the looks of a property. When you have decided to sell the property, you want to leave a good impression with every viewer and potential buyer that views the apartment.
Painting the walls is healthier, and its makes the house much nicer. If your apartment has wooden floors, you don’t necessarily have to replace them, you can also sand them and apply a new layer of varnish.
Related article: Renovate Your Apartment to Maximize Rental Income
Renovations with more impact include rearranging space. You can move walls to add extra bedrooms or bathrooms. Sometimes you can even remove dividing elements to add space. For example: if you take out (parts of) a hallway, you could add more m2 to bedrooms or a living room. Removing the wall between the kitchen and dining room is really trendy right now, and it opens up the entire apartment and can make a big difference. Bigger renovations could have a great effect on the value of a property.
- Upgrade your kitchen and renovate your bathroom. Many apartments still have old kitchens, and they need complete remodeling to meet modern standards, so renew everything: floors, tiles, kitchen cabinets, lights and appliances. You need to invest about 5000 euros in updating a medium-sized kitchen, but don’t forget that this can be of great influence on a potential buyer’s decision.
If you don’t want to stop now, but also want to modernize the bathroom, then you might need to invest another 25,000 euros. If you have the budget, consider replacing the bathtub and/or shower, washbasin, toilet, bathroom furniture and decorations. If your bathroom is on the small side and you want to add space for greater accessibility, then remove the bathtub and replace it with a shower.
- Home automation systems make daily life much easier, and a smart home is worth more. So if you have the chance, add electric blinds and install smart thermostats, for example. As many appliances are connected through Wifi, you can easily manage heating or air conditioning settings from an app on your phone.
What other aspects should be invested in when selling property?