Renovate Before Selling: Discover Why It's the Key to Maximizing Your Home's Value

Aug 22, 2024

A miniature house under renovation

When you decide to sell your property, the temptation to put it on the market immediately can be strong. However, it's crucial to consider a step that could radically transform the success of your sale: renovation. Renovating your home before selling is far more than just a facelift; it's an effective strategy to maximize its value and attract more buyers.

In this article, we will explore why it's essential to go through the renovation phase before selling, revealing the reasons why this step can make all the difference.

A First Impression That Hits the Mark

When it comes to selling a property, the first impression is often decisive. A renovated home has the power to instantly charm potential buyers.

Capture Attention From the First Visit

A freshly renovated home, with repainted walls, impeccable floors, and a modernized kitchen, catches the eye immediately. For example, a recent study shows that 73% of buyers make a decision within the first few minutes of the visit if they find the property visually attractive. Potential buyers are more inclined to imagine living in a space that looks new and well-maintained. This positive first impression can make the difference between a quick offer and a property that stays on the market for months. By giving your home a fresh makeover, you significantly increase its appeal from the very first visits.

The Power of Staging

Renovation also allows for better staging of your home's spaces. A bright, well-arranged room can create a "wow" effect that will leave a lasting impression on visitors. The goal is to make it easy for buyers to envision themselves in your property by offering them a clear vision of what their future home could be. A well-thought-out renovation is therefore a major asset in creating this instant connection.

Example ,During the sale of an apartment in Casablanca, the owner invested in minimalist home staging after light renovations. The result: a sale concluded in less than two weeks, with a 5% increase over the asking price.

Increase the Perceived Value of the Property

Renovating your home before selling it is not just a matter of aesthetics; it's also a strategy to increase the perceived value of your property.

Justify a Higher Selling Price

A renovated home, offering modern finishes and recent equipment, can justify a higher selling price. Buyers are often willing to pay a premium for a turnkey property where they won't have to undertake work immediately after purchase. This increase in perceived value can translate into better profitability for you, not only recouping the renovation investment but also generating additional profit.

Improve Competitiveness in the Market

In a competitive real estate market, a renovated property easily stands out from the competition. While other homes may require work, yours will be seen as a hassle-free opportunity, ready to move into. This increased competitiveness can not only speed up the sale but also attract multiple offers, creating favorable dynamics for a sale at the best price.

Example, A homeowner in Marrakech fully renovated the bathroom and kitchen before putting his apartment up for sale. Thanks to these improvements, he received three offers in less than a week, all above the initially planned price.

Attract a broader audience

A well-done renovation can also expand the circle of potential buyers.

Seduce discerning buyers

Some buyers, especially those who lack time or wish to avoid the hassle of renovations, are looking for already renovated homes. By offering a property that requires no additional work, you appeal to this category of discerning buyers, ready to invest to obtain a flawless property. A renovated home can thus attract a variety of profiles, from young couples to investors looking for a ready-to-rent property.

Ease obtaining mortgage loans

A renovated property can also be an asset for buyers seeking a mortgage loan. Banks and lenders are more inclined to provide financing for properties in good condition, thus reducing the risks associated with borrowing. By offering a renovated home, you ease the financial processes for your potential buyers, making your property more accessible to a larger number of people.

Example, A couple was able to secure a mortgage loan with a reduced interest rate thanks to the excellent condition of the renovated apartment they purchased. The property, renovated according to current standards, was considered a secure investment by the bank.

Reduce negotiation margins

Buyers are often looking for flaws to negotiate the price of a property down. A renovated home leaves them little room to maneuver.

Minimize friction points

By eliminating visible defects and modernizing key areas, such as the kitchen and bathroom, you reduce potential arguments from buyers to negotiate down. A property in perfect condition attracts fewer critiques, limiting aggressive negotiation attempts. By investing in renovation, you ensure that the selling price remains at a level you find acceptable.

Speed up the purchase decision

A property that requires no work is also more likely to quickly convince buyers. By reducing uncertainties related to the condition of the property, you facilitate decision-making, thereby encouraging a swift sale. The sense of urgency is often heightened when multiple buyers show interest in a renovated property, which can even lead to a full-price sale or a bidding war.

Example, During a sale in Casablanca, a fully renovated apartment was put up for sale. The first visitor made an immediate offer at the asking price, and the sale was concluded in just three days.

Compliance with current standards

Renovating before selling is also ensuring that your property complies with current standards, which can be a decisive selling point.

Update technical installations

Renovation allows you to update the technical installations of your property, such as electricity, plumbing, and insulation. A property that meets the latest standards reassures buyers and avoids unpleasant surprises. It is a mark of quality that can tip the balance in your favor, especially in a market where buyers are increasingly attentive to these details.

Adhere to new environmental standards

With the growing importance of environmental issues, a property that meets new standards in terms of energy consumption or thermal insulation is particularly sought after. By renovating your property to make it more ecological, you meet increasing demand and further enhance your property's value.

Example, An owner renovated his apartment by incorporating double-glazed windows and an eco-friendly heating system. As a result, the property was quickly sold to a buyer concerned about environmental issues, at a price 10% higher than the average market price.

Renovation, a strategic investment for a successful sale

Renovating your home before selling it is not a superfluous expense, but a strategic investment that can make all the difference. By improving the appearance, increasing the perceived value, and broadening the audience of potential buyers, you ensure that your property sells quickly and at an advantageous price. Renovation, when well-planned and executed, is a powerful lever to maximize the success of your real estate sale.

At Housing Place, we understand the importance of every detail in the sales process.