People who renovate properties as a business know the wins and losses that come with each sale. They have built a formula over years that sells and generally implement that formula to each renovation. They have done the hard yards, made the losses and built a business that wins.
It’s an exciting prospect, buying a property, adding value and selling it at a profitable price. If that’s the way it goes. Want you don’t hear about are the people who try their best and fall short of the required outcome. Overcapitalising is easily done, especially these days with prices so high for trades and products. It’s quite easy to think about all the people you need to speak to and hire initially, the architect, the builder, etc. Though a lot of people don’t ever think about consulting a real estate agent.
Here’s the benefits of why you should speak to an agent even before you begin your reno or even before you buy. We deal with your buyer every day of the week. More than anything, our job is about overcoming objections, this means that with every negotiation to sell a property, we have to sit down with the buyers and look at all the pros and overcome the cons. So essentially we have a pretty good idea across the board of what buyers want.
When you’re renovating to sell, it’s not about putting your stamp on an area, or building a name for yourself through design, it’s about making money. Would you seriously risk the amount of money that needs to be invested on the pride of having it your way? Some would, I understand and appreciate that stance. Though I learnt quickly in this business, when some of the main architects were coming to me, asking if their design is functional and saleable, that our practical knowledge of property and the market, is what actually counts.
So here it is, we provide you with a practical and functional knowledge of what you should do. The most important part to get right is your floorplan and that’s where it begins. It’s amazing that so many people always think about all the fittings and fixtures and how amazing the place is going to look at the end, but forget to make the spaces functional. I cannot tell you the amount of properties that have fallen so far short of their potential because the floorplan wasn’t thought through properly.
A good agent, with an understanding of what sells best can provide you with the basic layout to minimise on objection. They will be able to maximise on spaces and keep everything as practical as possible, specifically targeted to the demographic of the market the will be the most profitable.
Once you attain a practical floorplan and target market, the next thing to look at are fittings and fixtures. This is where the expense sheet starts to build. The most expensive part of renovating is purchasing all the fittings and fixtures and it’s easy to spend endless amounts of money on making a property look pretty. This part of a sale for a buyer is emotional, the logical part is done when the space is functional and suits their needs, but the real money is made on the emotion.
In the end, the information you should get out of the agent is how to make the floorplan as practical as possible, what sort of demographic is currently purchasing in the area and which will bring the highest return and what fittings and fixtures will make the majority of your potential buyers fall in love with your place, without eating all your profits or overcapitalising.