How can renovation boost the resale value of your home?
You wish to sell to sell your property in Collioure ? If so, renovation is an excellent way to increase its resale value. In fact, a well-renovated home is more attractive to potential buyers, enabling you to sell it faster and at a higher price. If you're thinking of renovating your home before selling it, don't hesitate to call on a real estate agency like Paradise Immobilier to help you with this strategy. Here's a taste of our advice on the most profitable jobs.
Understanding the impact of renovation
Real estate renovation has a major influence on the market value of a property. It's a process that goes beyond mere aesthetic enhancement. According to an OpinionWay survey for Groupe Aviv (1), 92% of homeowners believe that renovation significantly increases the value of their property.
- Increase in market value
By investing in updates, energy upgrades or cosmetic renovations, you increase the intrinsic value of your property. Whether it's modernizing the kitchen or updating the heating and air-conditioning systems, every new investment and every new initiative enhances functionality and efficiency.
- Statistics and key figures linking renovation and property appreciation:
Statistical data confirms the positive impact of renovation on real estate appreciation.
- On average, a renovated house can increase in value by almost 10%. This figure can be higher for larger cities.
- What's more, a well-executed renovation can reduce the time it takes to sell a property by 20 to 30%.
- Properties with green credentials (good insulation, with efficient heating systems) increase the sale price by 5 to 22%.
- A well-executed renovation can reduce the time it takes to sell a property by 20-30%.
- Some renovations are highly profitable
Some renovations are particularly profitable. They can be expensive, but the return on investment can be really interesting. Kitchen and bathroom renovations are smart strategies, where every euro invested can turn into added value when you sell your property.
Planning your renovation
Planning is the foundation of successful renovation. It enables you to achieve the desired results while minimizing risks and unforeseen events. Here are a few tips to help you organize everything intelligently:
- Identify your home's needs: is it old pipes that need changing, an old kitchen, or perhaps windows that let in air?
- Evaluate the necessary renovations by prioritizing those that will offer the best ROI, analyzing your daily routine and calling in the professionals.
- Set a realistic budget, taking into account the cost of labor, materials and any unforeseen circumstances.
- Explore the various financing options available (personal loans, mortgages or lines of credit).
The most profitable renovations
By law, it is not compulsory to carry out work before selling a property. However, as we've seen, renovation offers significant advantages. According to the Opinion Way survey, 66% of homeowners have carried out renovation work in the last 3 years, and 63% plan to do so in 2023.
Top 17 renovation projects to consider
- Redo the interior paintwork: fresh paint in neutral tones can transform a room without weighing down the budget.
- Complete kitchen renovation: modernizing appliances, countertops and the cabinet under the sink can significantly enhance a kitchen's appeal.
- Updating bathrooms: elements such as vanities, tiles and modern lighting can energize an old bathroom.
- Improving energy efficiency: replacing windows, insulating and installing efficient heating and cooling systems can reduce energy costs and appeal to buyers.
- Renovate floors: replacing worn carpet or old-fashioned linoleum with hardwood or modern tiles can radically change the look of a home.
- Adding a master suite: a master suite with en-suite bathroom is a huge draw for potential buyers.
- Finishing the basement : a finished basement increases the home's living and functional space.
- Upgrading electrical installations: updating the electrical system, especially in older homes, is a key factor for safety and functionality.
- Creating an outdoor living space, such as a terrace or patio, can be very attractive.
- Facade renovation: improving the exterior of your home with new paint, cladding or decorative elements can significantly increase curb appeal.
- Replacing the roof : a new roof can reassure buyers about the durability and integrity of the house.
- Adding smart technology: security systems, thermostats and intelligent lighting add a modern, practical touch.
- Repairing foundations: ensuring the solidity of foundations helps to avoid deterring buyers.
- Adding an extra room: whether it's an extra bedroom or a home office, adding a room automatically increases the value of the property.
- Plumbing renovation: replacing aging pipes helps prevent future problems and increases the value of your home.
- Improved lighting: strategically placed, modern lighting options highlight the home's best features.
- Additional storage facilities: built-in cupboards or customized storage systems in kitchens or garages are a great asset.
It's important to plan these renovations with professionals and to take the local market into account to ensure that the improvements match the expectations of potential buyers.
Exterior renovation and first impression
Curb appeal" is the instant charm that makes your home a real eye-catcher. A home with a strong "curb appeal" has the ability to create a positive first impression.
Potential buyers often make up their minds in a matter of moments, and the exterior of your home is the first visual contact they have. A well-kept garden, a clean facade and meticulous landscaping send a clear message: this house is warm, well-maintained and ready to move into.
To improve your outdoor space, follow these simple tips:
- Decorate your garden with plants, flowerbeds or shrubs,
- Refresh the facade,
- Think of outdoor lighting to enhance your home even at night,
- Look after the entrance.
Pitfalls to avoid
During renovation, it's important to avoid certain pitfalls to ensure your project stays on track:
- Over-renovation: investing in improvements that far exceed your neighborhood's needs may not be the best plan. This can be not only costly, but also difficult to recover on resale. Keep in mind the local market and the expectations of future buyers to avoid falling into the trap of over-renovation.
- Avoid exceeding neighborhood standards : if your home becomes a villa in the middle of a more modest neighborhood, this can create dissonance and impact resale value. Stay aware of surrounding standards and try to align yourself with them to ensure visual consistency and community acceptance.
- The risks of over-customized or trendy design choices: be careful with trends. An overly personalized design may not appeal to everyone. Opting for more timeless, neutral design choices can guarantee greater long-term appeal.
Finding the right professionals
Choosing the right renovation professionals is an investment in the success of your project. Whether through personal recommendations, in-depth research, or consulting real estate agencies for local advice, take the time to make the right choices to ensure your renovation goes smoothly.
In short, a renovated home is one that attracts the attention of potential buyers. By working with a Collioure real estate agency like Paradise Immobilier, you benefit from a trusted partner who understands the importance of well-planned renovations to maximize the potential of your Collioure home.
- Is it compulsory to carry out work before selling a property?
No, it is not compulsory to carry out work before selling a property. However, well-planned renovations can increase the value of your property and attract more potential buyers.
- How do you choose the work to be done?
The choice of work depends on the condition of the property and local market trends. Prioritize renovations that bring a better ROI, such as kitchen and bathroom renovations or energy efficiency improvements.
- What are the disadvantages of carrying out work before selling a property?
The main drawbacks include initial financial costs, the time needed to complete the work, and the risk that buyers' preferences may not match the improvements made.
- Which status for renovation and resale?
To renovate and resell, you can opt for the status of "marchand de biens", but this may involve specific tax obligations. Consult a professional to choose the best option for your situation.
- Is it risky to sell your property shortly after buying it?
Reselling quickly can be risky, as the costs associated with buying and selling can reduce your margins. What's more, the value of a property can fluctuate, and the market may not always be favorable.
- Is it legal to buy and sell?
Yes, it's legal to buy and sell. However, certain tax regulations may apply, particularly if you carry out this activity on a regular basis. Consult a tax expert for more information.
- Is it profitable to renovate your home for resale?
It depends on a number of factors, including location, the local real estate market, and the quality of the renovations. In general, well-executed renovations can increase resale value.
- What is the budget for renovating a 100m2 house?
The renovation budget depends on the work involved. On average, the renovation of a 100m2 house costs €100,000, if it's a major renovation.