Has it been a while since the last renovation of your property? A damp cellar, poorly insulated windows and yellowed wallpaper cause problems and lower the sales price. But is it worth investing again to increase the value of the property?
Old wallpaper, unpainted walls and a floor that could do with renewal are among the "decorative" renovation works. They are not absolutely necessary, but they improve the first impression. A property that is in a well-maintained condition looks more upscale overall. Such decorative renovations are not expensive, but can still make a big difference in the end in terms of price.
More serious are deficiencies that reduce the quality of living. Heating systems and insulation, for example, should be up to date. These renovation works are more time-consuming and expensive. They deter many buyers who want to move into their new home quickly. At the same time, they also cause higher costs for the owner. So is it worth investing large sums in renovation at all?
The prices for renovation work must be well calculated
Put simply, it can be said that renovating or refurbishing a property is worthwhile if the resulting increase in value is higher than the costs incurred. Therefore, it is important that you calculate the costs for all upcoming changes well. For most owners it is difficult to estimate how high the increase in value will be after the renovation. It is therefore a good idea to leave this estimation to an expert. This way you avoid the risk of spending a lot of money on the renovation that you will not recoup through the sale.
In the real estate industry, one basically speaks of simple, normal and upscale furnishings. In the case of simple furnishings, it is possible, for example, that floor coverings are missing, the kitchen and bathroom are not tiled and the flat does not have central heating. Normal furnishings should have all the necessary features so that the new owner can move into the property immediately. Unlike high-end fittings, however, these do not necessarily have to be modern and meet the latest living standards. According to experience, upgrading from a normal fit-out to an upmarket fit-out brings an increase in value of around 15 to 20 percent. A simple interior, on the other hand, reduces the price by about 15 percent compared to a normal interior. However, these values only serve as a guide and are no substitute for a professional value assessment.
Great successes possible through renovation
Although a good calculation is unavoidable, it can usually be expected that the beautification work will be worthwhile for the owner. Especially for properties with simple furnishings, there may otherwise be no interested buyers or only those who are specifically looking for bargains that are difficult to sell and which they can renovate themselves at a reasonable price. Most buyers, on the other hand, estimate the renovation costs to be higher than they actually are and thus fear paying too high a price for the property. It is therefore often the case that owners who initially offer their property unrenovated and do not get rid of it experience a positive surprise after the renovation. The property then sells not only much faster, but also at a significantly higher price.
Are you unsure whether it really makes sense to renovate your house? Contact us now. We will be happy to advise you.
Photo: hanohiki
