Has it been a while since your property was last renovated? A damp basement, poorly insulated windows, and yellowed wallpaper cause problems and lower the selling price. But is it worth investing again to increase the property's value?
Old wallpaper, unpainted walls, and a floor that could use replacing are considered "decorative" renovations. While not strictly necessary, they do improve the initial impression. A well-maintained property generally appears more upscale. These decorative renovations aren't expensive, but they can ultimately make a significant difference to the final price.
More serious are defects that reduce the quality of living. Heating systems and insulation, for example, should be up to date. These renovations are more time-consuming and expensive. They therefore deter many buyers who want to move into their new home quickly. At the same time, they also result in higher costs for the owner. So, is it even worth investing large sums in renovations?
The prices for renovation work must be carefully calculated
Simply put, renovating or refurbishing a property is worthwhile if the resulting increase in value outweighs the costs. Therefore, it's crucial to carefully calculate the costs of any planned changes. Most owners find it difficult to estimate the increase in value after renovations. It's advisable to entrust this assessment to an expert. This way, you avoid the risk of spending a significant amount of money on renovations that you won't recoup through a sale.
In the real estate industry, properties are generally categorized as having basic, standard, or high-end features. Basic features might include, for example, the absence of flooring, untiled kitchens and bathrooms, and the lack of central heating. Standard features should include all the necessary amenities for the new owner to move in immediately. Unlike high-end features, however, these don't necessarily have to be modern or meet the latest living standards. Experience shows that upgrading from standard to high-end features increases the value by approximately 15 to 20 percent. Conversely, basic features decrease the price by about 15 percent compared to standard features. These figures are for guidance only and do not replace a professional valuation.
Great successes are possible through renovation
While sound cost calculation is essential, renovations generally prove worthwhile for the owner. Especially for properties with basic amenities, it's possible to find no interested buyers, or only those specifically looking for hard-to-sell bargains that they can easily renovate themselves. Most buyers, however, overestimate the renovation costs and fear paying too much. Therefore, it's common for owners who initially list their property unrenovated and struggle to sell to experience a pleasant surprise after the renovations. The property then sells not only much faster but also for a significantly higher price.
Are you unsure whether a renovation is really worthwhile for your house? Contact us now. We'd be happy to advise you.
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