TV home reno show effect: Why experts say spending big on a home before selling could be a mistake
Is splashing the cash on your home before you sell the best idea? TV reno shows would have you think so, but experts have revealed why you should think twice about spending big before listing.
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Sellers who undertake too much DIY or paint their property in bold colours could be doing their home value a disservice, experts say.
When it comes to selling your home, industry sources say less can often be more.
And while TV reno shows may make you believe that buyers feel they have to revamp everything before selling, they can often risk overcapitalising, or devaluing their property with half-hearted finishes. Here are some things to look out for.
TO DIY OR NOT TO DIY
Real Estate Buyers Agents Association of Australia (REBAA) president Melinda Jennison says one of the biggest mistakes buyers make is picking up the paintbrush.
“Sellers who paint their home with overly bold or unconventional colours can turn buyers off and detract from value,” Jennison says.
“If sellers are going to repaint, it is much safer to stick with neutral tones that appeal to a much broader segment of the market.”
She says “poorly executed” DIY projects can also pose a problem, especially if unfinished or done without a permit, if one is needed.
“Sellers often think adding an extra room, enclosing a balcony area or tacking on an undercover sitting area creates more usable space within a property,” Jennison says. “But when these things are poorly executed, it can detract from value.
“A buyer does not want the headache of rectifying defective work soon after they purchase a new property.”
CLOSE BUT NOT TOO CLOSE
Real Estate Institute of Australia (REIA) president Hayden Groves says local amenities, while predominantly positive, have the potential to detract from a property in some circumstances.
“Sometimes, by way of example, being right on a park can pose a security risk and therefore may not add value,” he says.
“But investing in secure fencing and cameras will help address that.
“A popular restaurant or cafe nearby can be great but during busy times, street parking can be a problem.”
Jennison agrees, adding that while good school zones are top of many buyers’ lists, if there’s “traffic congestion and unwanted noise during school hours, the value may actually diminish”.
PLAYING TO THE WRONG CROWD
Groves urges all sellers to understand who might be interested in their property, and tailor any works to their needs, to get the best bang for their buck.
“Is your area attracting investors, first-home buyers or downsizers?” Groves says.
“Knowing this ought to guide you as to what elements of your property to focus on in order to achieve the best selling outcome.
“For example, if you’re in a strong investor area, focus on maintenance issues at the property over aesthetic.”
He advises buyers not to over capitalise on works.
“Replacing the kitchen and renovating bathrooms are expensive, so get advice from
your local Real Estate Institute member agent if undertaking such major works are beneficial,” Groves says.
Jennison warns many sellers think the cost of renovation and improvement works can always be recouped, “however, this is not always the case”.
TOP 3 SELLING MYTHS
Paint fixes all: A lick of paint can make a room look as good as new, but only if the colour is right. Bright and bold colours can be hit and miss with buyers and can detract from your property’s value.
You can DIY that: Despite sellers’ good intentions, undertaking works yourself can often be a recipe for disaster. If not permitted or left unfinished, they can create a headache for would-be buyers.
Renovate before selling: While redoing big-ticket items like a kitchen or bathroom may look good, such works can often result in over capitalisation. Think carefully about the end value and the demographic of your potential buyers before doing so.
Source: REBAA president Melinda Jennison and REIA president Hayden Groves
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