Refurbishing properties can be a risky endeavour, but if done correctly can produce a satisfactory sale within a realistic time period. Here are our tips for maintenance and refurbishment that will help you secure a profit when it comes to selling.
1. If you’re purchasing a property with the sole intention of refurbishing and selling for a profit, you need to ensure you buy the property and carry out the works as cheaply as possible. But this doesn’t mean ignoring the services of tradesman and attempt to carry out the work yourself (unless you have the skills). Whilst they can cut into your profit margin, a reliable tradesman is capable of completing the work to a quality standard, which still remains a priority. And it’ll be more expensive enlisting someone to clean up any mistakes you make!
2. If you plan on making large-scale redevelopments, ensure your finances are in order before proceeding. It might also worth having an emergency fund set aside in case things don’t go according to plan.
3. The most effective method of adding value to a property is by increasing its office footage. Complete thorough research into how much it will cost and how much value it can add to a property beforehand to ensure it’s your best course of action. There’s no point spending £8,000 adding an extra living room when it only adds an extra £6,000 to its value. Hitting your target market should also be a key focus; you probably wouldn’t add an extra bedroom to a two bedroom house if you were targeting couples (without kids) would you?
4. Remember why you’re doing this: to sell the property and make a profit. It’s easy to fall into the trap of getting too attached by fitting it out with fixtures and fittings that you would like. Properties with neutral colour schemes and layouts will always do better in the market. Making this mistake will likely cost you more long term.
5. If however, you’re not planning on selling the property and then rent it out, you should consider what on-going maintenance will be needed. When refurbishing it might be worth opting for more hard-wearing materials; whilst things like heavy duty carpets and thick paint can cost a bit more in the short term, it’ll reduce the risk of having to replace broken or worn items in the future and reduce the ongoing cost of maintenance.
6. Walk before you can run; don’t embark on a refurbishment that you won’t be able to handle. Those who lack experience in the property maintenance game should start with easier properties; good starting points are those that just need a bit of decorative work. In today’s market, it’s a major turn off for potential buyers who are looking for somewhere to move into right away. Once these projects begin managing themselves, you can take on properties that require a bit more work which will net you a larger profit.
Property refurbishment can be a long and stressful process, so you need to make sure it’ll be a worthwhile endeavour. Hopefully you find some of the advice above helpful and informative.