If it is decided to sell an apartment, many people wonder whether it is worth making repairs before the sale. There is an opinion that repairs will help to increase the value of the apartment and find a buyer faster. Let's find out in which cases renovation is necessary, and when it is better to refuse it, how it affects the value of real estate and whether the invested funds will pay off.
Does renovation affect the value of an apartment?
No matter what kind of renovation is in the apartment, it is not possible to significantly increase the value of the apartment and give the opportunity to earn extra money with its help. When buying real estate, most buyers focus primarily on the price of living space. If you rashly make expensive repairs in an unsuitable segment of housing, such an apartment will be extremely difficult to sell.
If we talk about minimal improvements in economy and comfort class apartments, they can slightly increase the value of the property. But the main role of such repairs will be not to earn money, but to attract more buyers. It is important to understand that buyers of secondary inexpensive segment evaluate not the repair, but the neighborhood, the area of housing, the number of rooms, the convenience of the layout. On this basis, it makes no sense to spend a lot of money on repair work in an inexpensive apartment.
Does renovation pay off when selling an apartment?
There is an opinion among realtors that "you can't sell a renovation". It appeared due to the fact that in most cases, the owner's investments in the repair of the apartment do not pay off when it is sold.
If you analyze the real situation on the market, it usually turns out to return only about 40-50% of the real cost of repair. If the owner will invest in improving the apartment 10 000 dollars, then buyers will agree to pay extra "for repair" when buying a dwelling maximum 4000-5000 dollars. This can be explained by the fact that the tastes of the seller and the buyer are often different, that is, the buyer immediately begins to think about what he will change and how much he will have to spend on it.
If we consider specifically major repairs, such an idea should definitely be abandoned. Large investments in renovation rarely pay off. The only exception is expensive elite class real estate, which is usually bought in order to move in immediately and enjoy comfortable living conditions, rather than to look for designers and buy building materials.
What kind of apartments sell better - with or without repair?
In general, cheap apartments sell best regardless of whether they are renovated or not. And yet, if there is a question about the advisability of carrying out repairs, then it is worth separately considering different types of repairs in order to understand whether it will be possible to quickly and profitably sell the apartment.
Cosmetic repairs
Many realtors believe that it is worth investing money in pre-sale repairs only in those apartments that are not located in old buildings. To explain this is simple - housing in an old building often requires major repairs, that is, the buyer is likely to do it after the purchase of housing, so it makes no sense for the seller to spend time on cosmetic repairs. But not everything is so unambiguous.
Inexpensive cosmetic repair by yourself is a minimal cost for the seller. But thanks to this, the apartment will become more relevant and attractive, which may interest more buyers. It will be faster and easier to find a real client.
For cosmetic repairs it is enough to paste wallpaper, paint pipes, lay new linoleum, change outlets and switches. All this can be done without the involvement of builders with a minimal budget for the purchase of building materials. After repair, the object will look more favorable against the background of other apartments in old houses.
Major renovation
Depending on the original condition of the apartment, a major renovation can cost a fairly large sum of money. Most sellers after major repairs plan to increase the cost of housing by 5,000-10,000 dollars. This option may interest some buyers, but potential customers will definitely become fewer, as many are looking for real estate, first of all, inexpensive.
To understand whether it will be profitable to sell an apartment with major repairs, you need to immediately calculate the approximate costs and possible profits. It is also important to take into account that it is better to refuse from serious repairs in an economy-class apartment, but for business or elite-class housing, this option may be suitable.
Designer renovation
Designer repair is the most expensive variant of repair works. Its cost includes the author's concept of the interior, modern and expensive building materials, advanced technologies, etc.
Most often, the designer repair attracts a very small number of buyers, while spending on it will have to spend a lot of time and effort. If you compare the cost of its implementation with a major renovation, the designer usually costs twice as much. But it is extremely difficult to find a buyer with the same taste as the seller, so such objects are sold for a long time, and investments in repairs do not pay off.
What do realtors advise?
To sell an apartment not only profitably but also quickly, it is best to ask an experienced realtor for advice right away. Agents deal with dozens of apartments, know which of them are sold faster, what buyers pay attention to during inspection, how to improve housing with minimal investment for a profitable sale and not only.
Here are some recommendations from realtors of the real estate agency "Mayak":
- if the apartment is really in a bad and unattractive condition, it is worth to make cosmetic repairs, trying to minimize the financial investment;
- to sell real estate, you do not need expensive repairs, it is necessary that the living space was just clean and neat, so in some cases it is necessary only to carry out quality cleaning and remove old furniture and other junk;
- if it is decided to make repairs, you need to make it as neutral as possible, without bright colors and non-standard design solutions, so as not to narrow the circle of buyers.
All that is required from the seller is to give the buyer a clean apartment with light cosmetic repairs and neat furniture. Such costs will be minimal, but can make the object more valuable in the eyes of customers.
If it is difficult to determine for yourself whether your apartment will be sold as it is now, or if you still need to make some improvements to increase the value and attract buyers, you can immediately contact a realtor. Specialists of real estate agency "Mayak" will inspect the apartment, help determine the market value and advise whether it is worth making repairs in the apartment. The agency has its own database of clients, so you can sell the property even without repairs in the shortest possible time and at a favorable price.
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