To renovate or to sell?

This is a question that anyone working in finance, real estate, building or any other industry that involves housing would get asked regularly – I know that I do.

“We were thinking we would just renovate and possibly extend the house, that way we will get some more room and we would all fit.”

“My parents are getting old, so rather than them going into a village or care we were thinking of converting the back area of the house into a Granny Flat.”

No matter the reason, people are always going to want to weigh up their options when it comes to renovating or selling. Here are some things you should consider before taking the next step.

COST.

I know this seems obvious, however, the amount of homes I have been through or tried to finance over the years where clients have completed “renovations” or “extensions” and have clearly not sat down and carefully constructed a budget before starting the renovation is silly. There are a lot of things that you will need to consider before starting a renovation;

-         What materials will I use? What is the difference in price?

-         What trades will I require? How many quotes should you get?

-         What will I renovate and what will I leave? Quite often you can easily “overcapitalise” and this will mean that you cannot sell the home for what you paid for it and spent on it in renovating. Often, a conservative approach can be the safest way to renovate.

-         Can I do anything myself? DIY is great, however, what experience do you have and will it end up costing you more if you cannot complete or have to redo things?

-         Where will all of my stuff go when I complete the work? It may all fit on the property, however, if it doesn’t all fit you may need to consider storage options and this will come at an additional cost – not to mention the time and money to get it from here to there and back again.

-         Where will you live whilst the renovation is going on? If you have to rent a home whilst you are renovating or stay with relatives, this could incur additional costs that need to be included in the budget.

There is obviously a lot to consider.

TIME.

Renovating or extending can take a very long time. Even if you outsource the work, you still need to have your finger on the pulse. Furniture will need moving and it may not fit on the property which means moving it somewhere else. Trades may cancel on you or they may not “line-up” and alternative arrangements may be required. Products may not be available. Unforeseen hiccups may appear during the destruction/construction process - and these are just to name a few.

Even at the quoting stage, this is an extremely time-consuming process. Let’s just take the example of flooring. There are so many different options for flooring now it is mind boggling - carpet, timber boards, tiles, vinyl, vinyl planking, floating floors, parquetry, polished concrete and the list goes on! So where would you even start?

Having completed an entire home renovation myself – I know first hand how much time a renovation can take and it is something that cannot be underestimated.

KNOW-HOW.

I’ve touched on this already, however, if you have zero experience in the building industry and you are starting from scratch when it comes to renovating, well, it will probably end up costing you more time and money than say if a carpenter or an electrician decided to renovate their own home.

Sure, you can learn and there are thousands of YouTube videos and tutorials on the internet machine that can get you started but at the end of the day, we often learn through making mistakes and learning from those mistakes and when we are taking about the single biggest asset most people will ever own in their lives, mistakes can be extremely costly.

RESALE.

Why are you renovating?

Is it to improve the property so that you can sell it for a profit?

Is it to improve the property so that you can stay in the property, for example, to give you more room or accommodate other family members?

Whatever the reason, I think it would be a little silly not to have one eye on the future and think about resale, after all, we are talking about spending a lot time and money on this renovation and you want it to be worth it in the end, surely?

So where do you start?

Do you spend your weekends going through Home Opens and Builders Display Homes gaining knowledge and know-how?

Will you consult Instagram, Pinterest and Facebook for all of your decorating and styling inspiration?

Whatever your answer is, resale is a big deal and, in my opinion, a renovation done incorrectly can actually cost you a sale or money at settlement.

SELL.

Whether you decide to renovate or sell, my suggestion would be to get expert advice from professionals in their respective industries.

Real Estate Agents are experts in property and the current marketplace. Real Estate Agents can provide you with up to date advice and data from properties that have sold in your area that are similar to your property or that would be similar after say, a renovation. Real Estate Agents see often hundreds of homes a year and should be keeping up to date with the latest building trends and products that are available. Real Estate Agents are often in communication with a big number of tradespeople and can suggest people for you to get into contact with. Real Estate Agents should be in the know when it comes to what buyers are looking for in certain areas.

So, whether you are thinking of renovating, extending or selling, call a Real Estate Agent that you can trust and that has the experience to guide you through the process or suggest people that can. After all, we are taking about your money, time, and probably your single biggest asset, please don’t leave it to chance.

#merrifieldrealestate #kylesproxton