How to Achieve the Highest Sale Price With Tessera Properties
- BY Tessera Properties 1/2/2020
Is it worth renovating a house before selling? It’s a common concern many homeowners face when looking to sell.
Undertaking small home improvements can add value to your property and increase the final sale price. For instance, remodeling your kitchen, modernizing an old bathroom, or adding a fresh coat of paint can ensure your property is much more attractive to potential buyers and, ultimately, help you turn over a tidy profit. However, the answer isn’t always so black and white. It takes careful planning to ensure you recoup your renovation costs.
Below, we’ll discuss the top renovation projects you should consider before listing your property and some of the results we’ve been able to achieve for our clients.
What Renovations Add the Most Value?
First things first, when it comes to remuneration, not all renovations are created equal. Therefore, you want to be strategic with what you spend and where you spend it. For example, adding a designer feature wall or loud flooring that matches your style may not necessarily appeal to everyone. Treat your renovations like a business decision (take out personalization) and focus on the projects that will deliver the best return. Here’s how you can maximize the impact of your renovation while minimizing your spend:
Often viewed as the heart of a home, a kitchen is where your family and guests regularly gather to socialize, cook, and enjoy meals. It’s one of the most important spaces in the house and undoubtedly one that buyers will scrutinize very closely. So, your kitchen must be well-presented.
However, you don’t need to go all out and re-do your entire kitchen. Small projects such as replacing the cabinets, adding an island bench, refreshing the counter, or improving storage space can drastically increase your final sale price. Be mindful when selecting the color palette for finishes and invest in top-quality appliances to really stand out. Recent findings from Remodeling magazine’s 2019 Cost vs. Value report indicated that you can expect to recoup up to 7580% of the cost for a minor kitchen remodel in New York ($286k job), although the ROI can be much more if you’re savvy with design and materials.
While typically one of the smallest spaces in the house, bathrooms are big-ticket items that can add significant value to your property. If your bathroom isn’t up to scratch, it can be an instant turn off for potential buyers who often perceive bathrooms as expensive home improvement projects. It can also trigger suspicion about underlying plumbing or electrical issues, or even changes in the building codes that will hinder future work.
When remodeling your bathroom, you want to make sure the design is modern, clean, and stylish, although you also want to avoid overcapitalization. Make sure you have a budget set aside and focus on replacing visual items that will have the biggest impact for buyers. For example, adding an inexpensive heated marble floor, replacing the bathtub, and updating fixtures can completely change the overall feel of the space. Remember, you don’t have to spend a lot to get the wow factor. Done well, you can often recoup 100% of your investment.
What Type of Projects have we worked on?
When you hire the right real estate team, you’ll be well-positioned to understand the best approach to renovating your property and achieving maximum sale price. We’ve been able to guide our clients on the best value-add renovations, fix problematic properties, and simplify the process when it comes to preparing your property for sale.
With years’ experience in construction, we’ve managed everything from small renovations to full-scale construction projects. Below are a few of the projects we’ve worked on for our clients.
Home Improvement Project for Listing in East Hampton, New York
This listing was a home from the 1980s that had never been updated or refreshed. The owner had recently passed away, and the property needed to be de-cluttered and professionally cleaned before listing.
We conducted small home improvements, including painting the house (interior and exterior), reinforcing/staining the decking, and landscaping the surrounds to improve curb appeal. All the hard work paid off, and we were able to sell the East Hampton property for full asking price in one day.
Fixing Problems for Bronxville, New York Listing
There were multiple issues with this listing. Firstly, the property hadn’t been issued a Certificate of Occupancy (C/O) due to problems with safety fencing. Secondly, there were open work permits relating to the roof and retaining wall from over a decade ago that needed to be closed out.
Both of these issues needed to be addressed before we could sell the property. The home is unable to be legally occupied until C/O has been issued. Also, open work permits can place a large burden on buyers, and if not closed by the Department of Buildings, can result in fines or limitations on future work. However, with our knowledge and experience, we were able to quickly rectify all the issues and get the property on the market.
New Build in Montauk, New York
More recently, we’ve been heavily involved with a new build in Montauk, New York. Due to our extensive network, we were able to introduce the property owner to a prominent developer, which allowed them to gather ideas for their upcoming build.
We then managed every step of the build for the owners from meetings at the job site to town inspections and reviewing the blueprints–right up until the Certificate of Occupancy was stamped. This took a massive burden off our clients and ensured they weren’t stressed and felt at ease during an important time.
Get the Highest Sale Price with Tessera Properties
There’s a lot to consider when it comes to selling your property for the highest price. Some renovations can increase the overall value (e.g. kitchen or bathroom remodel), while others you won’t ever recoup (e.g. extensive landscaping or new HVAC unit). Therefore, you need to assess the market and understand what improvements you can make to ensure you’re getting a positive return.
At Tessera Properties, we can guide you on the right renovations that will increase your overall value, fix problematic properties (e.g. permits and C/O issues), and be your trusted real estate experts. If you’re looking to sell your property, or simply need some professional advice, Get in touch with us today.