Renovate before selling?

Until now, a property's energy efficiency played a minor role in its sale. The tide has turned, and now potential buyers are paying close attention to energy standards and utility costs. Many owners looking to sell are therefore wondering whether and what they should invest to attract buyers and increase the value of their property.

Old heating systems, leaky windows, poor insulation – these situations quickly raise the question of whether the property can even be sold in its unrenovated state. One thing has become clear in recent months: price reductions are to be expected in such cases. But is it worth investing a significant amount of money to sell the property after renovations? Will the price reduction be recouped that way?

Is it worth replacing the heating system?

Major renovations, such as replacing the heating system, only pay for themselves after several years – this is something owners should keep in mind. Furthermore, due to the shortage of skilled tradespeople, time must be factored in for the work to be carried out. It's also impossible to know whether the chosen heating system will suit the tastes and plans of a potential buyer. The new Energy Building Act has also introduced new funding conditions. For example, buyers may be eligible for the income-based bonus for replacing the heating system, while owners may not. In such cases, it makes more sense to leave the expensive replacement to the new owner, who can then choose the type of heating system that suits them best.

The heating system example illustrates this: often, the time, effort, and cost of a renovation aren't worthwhile. It's simpler to factor in the price reduction beforehand and offer the property at a lower price. Those who don't want to spend thousands can look at what can be done on a smaller scale.

Think small(er): even new tiles will help

Maintaining a property in good overall condition can also help attract suitable potential buyers. This includes things like retiling the bathroom to bring it up to date. Carpets should be removed and replaced with contemporary flooring. A fresh coat of paint, both inside and out, can be worthwhile, as can a well-maintained garden. Classic cosmetic repairs to address signs of wear and tear, such as painting and filling unsightly drill holes, are also beneficial. A local professional real estate agent can advise you on these smaller, yet worthwhile, improvements. They will also know when it's better to renovate first and then sell.

Are you looking for support with renovations before selling or after buying a property? Contact us! We'd be happy to advise you.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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