All over New Zealand, especially with house prices where they are right now, there are many conversations being had around this topic. Do we sell, do we renovate or perhaps we wait and see what the market does? Unfortunately, there is no one-size-fits-all answer, which is what makes deciding whether to sell or stay that much harder.
With increasing building costs and uncertain house prices, the decision has never been more confusing for families, especially here in Taranaki. If you don’t love your house or don’t want to put the love into it by improving it, then listing seems like the logical option. But will listing it make you and your family happier?
As everyone’s situation is different, it could be in someone’s best interest to stay in their property. This could be due to a number of factors including; location, equity potential, financial situation, and most importantly, long term goals. These factors may also be the reason why some want to sell. If your property isn’t in a great location, doesn’t have huge equity potential and doesn’t meet your long-term goals then listing may be the best option.
The good news is, you don’t have to make the decision yourself. Real Estate companies are experts in this field and can offer sound advice for you and your situation. In fact, they live and breathe real estate every day, which means they understand the current market and how to get the most potential out of a property.
Real estate salespeople can provide you with a real market valuation as well as offering insights into market potential. However, before you reach out, there are certain questions that can help guide you through the decision-making process. With these in mind, we have listed a mini checklist below to help you on the journey to deciding whether to love your home, or whether to list it!
Does your house have the potential to increase its value, or meet your needs?
Choosing to renovate your home is a great way to add more value to an existing property or to make it meet your requirements without moving. If your home ticks many of your boxes such as location and potential then you might be well on your way to having your dream home already! As Kirsty from ‘Love It or List It’ UK would say; “With a bit of inspiration, and a bit more effort you could already be in your dream home.” This is where undergoing a home renovation gives you the opportunity to create a home that is not only unique but also reflects your tastes.
Even if you are actually planning on selling your home in the near future, then a renovation can really help to increase the value of the property but the type of renovation you do will be different. The right renovations can increase the amount of interest that the property attracts from potential buyers by offering desirable features that you might not choose to splash out on if you’re staying in the property.
Home renovations don’t need to be big projects that cost hundreds of thousands of dollars, they can be anything from a fresh coat of paint, a new kitchen to a full structural shift around. According to the current real estate market in Taranaki, McDonald Real Estate Salesperson Angela Chamberland explained that “There is a shortage in properties of all price brackets, with houses that are presented well selling quicker.”
This begs the question, if your plan is to renovate to sell, will your renovation be to another's taste? Is it better to renovate before you sell or simply leave your home as-is and sell the potential? And if your renovation takes time or is costly, will this, in fact, add value to your home?
The term 'over capitalisation' means to improve a property beyond its resale value. If you have spent too much money renovating your property and are not able to recoup this money if you decide to sell then you may find yourself in a predicament. It can be exciting renovating a home, but it is crucial to think about the bigger picture if you’re not planning on staying long term.
If you are planning on renovating, then we highly recommend checking your plans with a valuer or experienced real estate consultant before beginning the work. They will be able to advise you on whether the planned work will add value to your home or not.
Even a simple lick of paint to freshen the home up can have an effect on the asking price. The idea is to make the home look as appealing as possible. Buyers will also be on the lookout for new things that they will not have to replace themselves such as HVAC systems and appliances. Additional living spaces are also a big plus for a buyer.
Although there are buyers in the market looking for finished homes, they are often quite picky as they know exactly what they want. Not everyone can appreciate someone else’s taste, even if you think it is popular. This is where ‘potential’ can be a huge selling point to home buyers that an unfinished property may sell for more than the finished product once the cost of the renovations has been factored into the equation.
If you feel like you may have overcapitalised your property then now might be a great time to list. With house prices higher than this time last year the chance for you to regain the investments you have made has never been better.
‘Location, location, location’ is probably a term you have heard many times. And it’s rarely more appropriate than when you're in the market to buy a home. Most people are adamant on their location before they start filtering property sites from locations close to popular attractions to homes in school zones there are many factors to consider. Location matters, it is something that won’t change when you renovate, so think long and hard about your location. That first home that you purchased in your 20’s may not tick as many boxes as it once did. It also pays to not only think about the present but also consider your future plans and what your family will be doing in 5 or even 10 years.
Price plays a huge part in helping someone decide if selling their home is the right move. The first thing you should do is find out how much your property could be worth in the current property market by getting an appraisal done on your home. From there you can look at the market and see what is selling within your price range. Sometimes the potential for a cash windfall can help convince an unrelenting partner that it’s time to sell! As Phil would say; “Listing it is the only way to get what you want.”
If you’re unsure what the best option is for you then we recommend getting a free no-obligation appraisal done on the current value of your home. If the price is right then you can consider listing, and if it’s not then you know you're in the perfect home and can plan some renovations or upgrades. Let us help show you what the current market will give you for your home before making an informed decision.
Contact us today to arrange a chat with our experienced and trusted salespeople.