Renovation before selling the property = higher sales price?

The red roof tiles are green with moss, the formerly white façade is crumbling and the wallpaper is yellowing. For many property owners in such cases, the question arises as to whether they should spend money again to bring the property up to scratch or whether they should sell directly. Will a renovation result in a higher selling price?

Like the location of a property, its condition naturally also has an influence on its value. Refurbishing a property involves rectifying serious defects. In contrast, renovation is about improving the appearance of the property. Measures include, for example, wallpapering, painting interior walls and facades or replacing the floor.

The well-kept property

Real estate experts emphasize that renovation generally increases the attractiveness of a property. The more attractive a property is, the easier it is to sell at a good price. Especially if, for example, the location of a property is not ideal, the appearance and ambience need to be more convincing. Experience shows that prospective buyers are more willing to compromise on well-maintained properties.

The unkempt property

Conversely, real estate professionals have also found that prospective buyers are often skeptical about properties in need of renovation and often unconsciously suspect further defects or problems. Emotions play a major role when buying a property. Even in the case of immaculate properties, potential buyers occasionally turn away simply because they don't have a good impression. Other buyers, on the other hand, use this to negotiate down the selling price. In addition, prospective buyers often estimate the costs of renovations to be higher than they really are.

How much can the renovation cost?

Of course, a renovation is not worthwhile if it ends up being more expensive than it increases the selling price. It is best to consult a professional estate agent to find out which renovation measures will affect the selling price and how. This will enable you to estimate how high the renovation costs may be. Once you have an overview, you can decide which measures you can carry out to make the renovation worthwhile for you financially.

A quality estate agent from your region is best placed to tell you which measures will really pay off before the property is sold. Thanks to his many years of experience, he knows the local real estate market and knows which renovation measures the target group values for your property. They will also determine the value of your property and can tell you how much a renovation would increase the value of your property.

Would you like to know how a renovation affects the value of your property? Get in touch with us! We will be happy to advise you.

Further information can be found here:

https://www.welt.de/finanzen/immobilien/article131522560/Eine-teure-Sanierung-ist-ihr-Geld-meist-nicht-wert.html

https://www.badische-zeitung.de/kaufpreisoptimierung-durch-renovieren-oder-sanieren–185062692.html

https://www.handwerksblatt.de/betriebsfuehrung/renovieren-vor-dem-immobilienverkauf

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.

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