How to balloon your profit when renovating
Have you calculated the renovation costs before bidding on your next auction property? Ensure you consider all of the below before bidding to buy and securing your next auction steal.
- What is the ceiling price of the property? Some buyers can become to tied up in renovating to such a high spec, but if the location doesn’t call for it, the selling price will not reach its maximum. As the saying goes, ‘Buy the worst house on the best street,’ this will give you maximum scope to add value.
- What other property and buildings surround the new addition? Are you trying to build a stunning, detached property in the middle of an estate full of flats? Research the area and make sure the location calls for the time and investment your willing to give.
- Bare in mind whose home this will be. Is this a home to live in or a rental property as the level of finish and attention to detail will be different and dependant on this?
- Make the right first impression and increase the street appeal. Have you considered the exterior of the property as well as the interior? Are the gardens maintained and lawns cut?
- Maximise your space. If you need to reconfigure a room or take town stud walls to make a space open plan… do it! This will create a free flow system that will seem natural and will be a big plus for viewers.
- Re-paint throughout for a fresh feel and remember bathroom and kitchen renovations are KEY. Whether the property needs a full kitchen or bathroom refit or a cosmetic uplift these will be key features if your looking to re-sell or let out the property.
- Stick to your budget. Determine what you can afford against what the property needs and ensure you keep behind 10% of the budget back for contingencies.
If you’re renovating for profit, which is a top reason for buying at auction, your goal is to make targeted changes that deliver maximum impact for minimum spend with your renovation. Ensure these changes are done professionally and give yourself the best chance of reaping the benefits to your, soon to be completed, journey.