Should I renovate my home prior to selling?

October 17, 2022

When it comes time to sell your home, you may be wondering whether you should renovate first. After all, making some updates could help you get a higher sale price. But it's important to weigh the costs and benefits of renovating before selling.

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Here's what you need to know about renovating your home before selling in Australia.

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The Pros of Renovating Before Selling

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1. Β Β You could get a higher sale price.

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If you make strategic renovations, you could end up getting a higher sale price for your home. This is especially true if the renovations you make are in line with current trends. For example, installing a sleek new kitchen or adding an outdoor entertaining area could make your home more appealing to buyers and help you fetch a higher price.

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2. Β Β You could sell your home faster.

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Another benefit of renovating before selling is that it could help you sell your home faster. Buyers are often attracted to homes that have been recently updated, so making some changes could help your home stand out from the competition. This could be especially helpful if you're in a hurry to sell.

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3. Β Β You can tailor the renovations to your budget.

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When you renovate before selling, you can tailor the renovations to your budget. This means that you can make as many or as few changes as you can afford. For example, if you're working with a limited budget, you might only make cosmetic changes like painting the walls or replacing the carpets. But if you have more to spend, you could do more extensive renovations like adding a new bathroom or renovating the kitchen.

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4. Β Β You can attract a new demographic of buyers.

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If you're hoping to attract a new demographic of buyers, renovating before selling could be a good strategy. For example, if you're selling a family home, you might make some updates that would appeal to families with young children. This could include adding a pool, installing a fence, or converting a spare room into a nursery.

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The Cons of Renovating Before Selling

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1. Β Β It could take longer to sell your home.

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One of the potential drawbacks of renovating before selling is that it could take longer to sell your home. This is because buyers may be hesitant to make an offer on a home that is in the middle of a renovation. They may also be concerned about the quality of the work that has been done. If you're worried about your home taking too long to sell, you could consider renovating only certain rooms or making smaller changes.

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2. Β Β You could spend more than you'll get back in return.

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Another potential downside of renovating before selling is that you could end up spending more money than you'll get back in return. This is because the value of your home will only increase by so much, no matter how much you spend on renovations. So, if you're planning to sell soon, it's important to carefully consider whether the renovations you're planning are worth the investment.

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3. Β Β You could end up with a half-finished home.

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If you're not careful, you could end up with a half-finished home if you start renovating before selling. This is because it can be difficult to predict how long the renovations will take. If you're not able to finish the renovations before you sell, you may end up having to lower your asking price or leave the home in an unfinished state, which could turn off potential buyers.

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4. Β Β You could make changes that buyers won't like.

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When you renovate before selling, there's always the risk that you'll make changes that buyers won't like. For example, you might install a new kitchen that is too modern for the rest of the house. Or, you might make changes to the layout of the home that make it less functional. If you're worried about making changes that buyers won't like, you could consult with a real estate agent or interior designer before starting any renovations.

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Should You Renovate Before Selling?

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Whether or not you should renovate before selling depends on your individual situation. If you're hoping to get a higher sale price or sell your home faster, renovating could be a good option. But it's important to weigh the costs and benefits carefully before making any decisions.

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For further insights, take a look at the Chimni Dashboard.

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The Chimni Dashboard

Chimni is the simplest, fastest and most cost-efficient way to analyse postcodes and suburbs across Australia.

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