Is It Worth to Renovate Your Kitchen Before Selling?
The general consensus has long been that kitchens and bathrooms sell homes. Most real estate experts believe that these are the two main areas most buyers look at when inspecting a property. With this in mind, many sellers feel they need to spruce up these spaces before listing their property for sale.
However, a sparkling new kitchen will not necessarily guarantee a sale. And, if not managed carefully, it’s quite easy to overcapitalise. So, given the risks, is a pre-sale kitchen update really worth it?
The impact on your property’s value
Generally speaking, most buyers are looking for a ‘move in ready’ home. As such, renovating your kitchen prior to sale can increase the value of your property. This is particularly true if your kitchen is noticeably dated or the renovation includes opening up the living area.
However, there is a limit to how much a new kitchen will add to your sale price. With this in mind, if you do choose to renovate, you need to manage the budget carefully. The last thing you want to do is spend more than you will make back!
Most market experts recommend spending no more than 5% – 10% of your property’s value on a renovation. While this may seem like a lot, chances are it’s not just your kitchen that could benefit from a refresh. You also need to balance your renovation costs against the benefits, as some works will add more value than others.
The impact on your target market
When buyers inspect a property, they try to picture what their life would be like living there. While some buyers can see a property’s potential, most are easily put off by a dated décor and ageing appliances. As such, a kitchen update can actually help you attract more buyers.
However, it’s important to consider the type of buyer you are looking for. For example, if you’re likely to sell to a first home buyer, a basic kitchen fit-out should suffice. However, if large families are your target market, you’ll need a greater focus on space and storage.
When planning your pre-sale renovation, it’s also critical to keep in mind who you are designing for. While you may love bold colours and statement tiles, neutrals are usually better as they have a much broader appeal.
Check the state of the market
The real estate market is constantly changing and evolving. Sometimes, there are multiple buyers competing for most properties, and sellers can basically name their price. At other times, there are fewer buyers in the market, and those who are looking have more negotiation power.
At the moment, the market is a little volatile and varies greatly from area to area. As such, it’s worth speaking to your Agent about recent market activity and what buyers are currently looking for. Your Agent should also be able to advise whether a kitchen renovation is required and the potential impact on your sale price.
Planning your renovation
Before listing your home for sale, it’s important to do your research. Look at comparable properties in your area to get a sense of the sale price you can reasonably expect. This should help you plan your renovation budget and the scope and quality of works you need to undertake.
Once you know what needs to be done, speak to a specialist kitchen supplier – like Kitchen Shack. Our friendly design team have significant experience working with sellers and are experts in developing designs buyers love but best of all on a budget. They will work with you to plan every part of your renovation and help make sure you get the maximum return for your investment.