In our countdown to the top 3 ways to renovate for profit, No. 1 is to create an extra bedroom.
Adding an extra bedroom to a 2 or 3 bedroom cottage, dramatically increases the potential buyer pool therefore increasing your chances of achieving a much higher price. I know this might sound like a difficult task however under the right circumstances, I think you’ll be surprised at how easily this can be done.
A few years ago, we were approached by a young couple who were planning to sell their home and wanted advice on ways they could increase the sale price without over capitalizing. They had approximately $10,000 to spend on improvements to the property.
Upon inspection, we found the property was a 2 storey home purpose built and designed for themselves. It consisted of 3 bedrooms with the main bedroom occupying the entire top floor. The layout consisted of an oversized bedroom with breakout area, a large walk in wardrobe and ensuite bathroom.
When looking to add value to any home, we first explore the possibility of creating either additional living spaces or extra bedrooms. Larger families were the predominant buyers in this particular location, so the addition of an extra bedroom would open the property up to a much larger pool of buyers. In this particular case we re-designed the upstairs floor plan, converted the walk in robe to a 4th bedroom, erected some internal walls within the master retreat and created a spacious walk in wardrobe. The cost of this minor renovation was $11,000.
Prior to the renovation, the sellers had an agent give a market appraisal of $800,000. Post renovation the market appraisals were around $850,000. The owners were happy to sell at $850,000 and were preparing to set their reserve price for the Auction at this level. However one particular family was desperately wanting the property and we were able to negotiate them up to a much higher level than any other buyer was willing to pay. As a result the home was sold pre-Auction for $920,000.
If this couple had sold their home ‘as is’ without speaking to us first, they most likely would have achieved around $780,000 – $800,000. By engaging our Vendor Advocacy services, not only were they able to add $120,000 to the sale price of their home, they also saved thousands on agent’s fees as we negotiated this on their behalf AND they didn’t pay us a cent for our help as we deduct a portion of the agents fee on settlement for our services. All for an outlay of just $11,000!
If you’re thinking of selling and would like to know how to add considerable value to the sale price of your home, book in a time with us here for a complimentary chat.