Thinking about renovating a property for profit? There are many factors to consider in selecting the diamond in the ruff property to turn a healthy profit. Prior to being a buyer’s agent I sold many homes to amateur renovators. I discovered there was allot if skill in selecting the right property, knowing what to renovate and a correct selling strategy. Experienced buyers advocates can help you with the right property selection pointing your project in a profitable direction. Below are some points I look out for:
MAKE YOUR PROPERTY STAND OUT
At any one time there are hundreds of homes buyers can choose from, how is your property going to stand out and achieve a premium price? Desirable features make a house stand out from the rest. Look out for a property that has the potential for a high quality finish, high ceilings, unique landscaping or floor plan.
GOOD FLOOR PLAN
A good floor plan is one of the most important selling points of a house so renovators need to pay careful consideration when looking for property’s. Look out for multiple living spaces; windows that maximise natural light with good out looks. Consider the functionally of the living spaces and how practical it would be to live in the property.
OFF STREET PARKING
Off street parking is something most people expect to have with a property. Not having off street parking will be a detractor for some buyers and reduce completion when bidding for your property.
CHOOSE A PROPERTY BASED ON LOCAL MARKET DEMAND
Consider the demographics of the area and target a property that will attract the most buyers when selling. More competition increases your chances of achieving a premium sale price.
Avoid properties that need structural work. A key factor to a profitable renovation is adding visual value to a property, this means focusing on surface renovations that buyers and tenants can see. Spending money on structural improvements that are unseen can be costly and reduce profit. Buyer’s agents always recommend employing the services of a building and pest inspector. A building inspection report will identify major structural defects and reduce risk.