Renovating vs Selling. Which option should you choose?
Making the decision to either renovate or sell can be a tough one, especially when the sales market becomes quieter.
When planning to sell your home, usually there will be a consideration around the current market conditions, the costs to sell and the emotional attachment that is within your home.
Some things to consider when you are weighing up the renovating vs selling debate.
What are the costs and conditions to renovate
Determining the scope of your renovation will assist with planning and budgeting for major improvements to your home. Are you thinking about a larger renovation, including adding levels to your home and major structural work or is it a more modest kitchen or bathroom renovation?
If there are larger improvements, you may also need to factor in a need to relocate during the renovations which may mean renting for a period and storing furnishings and other personal belongings.
There may be conditions around the renovation that you choose including preparing documents and negotiating with the council for development applications (DA) to be granted permission to carry out the work.
Be cautious not to overcapitalise
Before planning to renovate, it is a good choice to have an agent through your home to gain a price estimate on your property in its current condition. One mistake that can be made during the renovation is to overcapitalise on the improvements which don’t lead to a higher return on your investment and can potentially cost you more in the long run.
An agent can give you an estimate of the before and advice on improvements that have the potential to add or detract from your home and the eventual sale price.
This estimate may also provide you with the information to decide armed with knowledge when you are choosing to renovate or sell the property.
Make a list and check it twice
Work out what the benefits versus the disadvantages are when it comes to renovating or selling your property. Write out a list for each option and ask all the necessary questions that you need to consider to work out which option is the best for you and your circumstance.
Don’t forget to include factors such as the location and its convenience to your current lifestyle, including access to work and school catchments. Also consider where you would like to relocate to, the reasons for moving and any costs that would be associated with upsizing or downsizing your home.