When we make the decision to sell a property, for whatever reason, it is very important the state in which it is in and the maintenance that has been carried out in order to obtain the best possible price.
Whether it is a property that we only use in the summer or because it was simply an investment at a certain time, a question that our clients often ask us is, if when they want to sell that property and need a reform, is it convenient to carry out the reform before selling the house or perhaps set a somewhat lower price but avoid the expense of that reform.
What is more beneficial then, selling or renovating my property to increase its value?
Let’s look at some answers to these situations.
Which is better, to sell directly or to renovate before selling?
To understand to some extent the current market, in which it is true that we find a high percentage of second-hand properties for sale and, if we follow the data published by the Federation of Real Estate Associations, we should know that the average age of properties for sale in Spain currently exceeds 40 years. It is logical that many of these properties, not because of bad use or because they have not been looked after, but simply because of their age, require certain improvements before they can be sold.
As you can imagine, and although part of this depends on the price or valuation of the property itself, the reality is that a refurbished property in perfect condition will always have a higher market value on equal terms than one that has not been refurbished or has not been properly maintained during all the previous years.
What should I do if I want to sell my house but it needs renovation?
The first thing to bear in mind when considering selling a property that needs to be refurbished is its market value, for which its state of conservation must be taken into account.
Once we know this value, is when we must consider whether it is convenient to make some kind of improvement or reform that can increase its value, but, more importantly, what will be the cost of the work and materials for such reform. In this way, we can again approximate its value and estimate whether it is a convenient investment on the part of the seller for the amount of this reform or not, based on the benefit that we can obtain.
What alternatives do I have if I want to sell my house but it needs renovation?
When we have taken the decision to invest in making improvements to the property that we are going to put on the market, we must also understand that a revaluation of the property does not always imply a higher profit.
The investment made, the area in which the property is located and the market value of the flats in that location, even the fluctuation of the market value are also important variables.
Below, we explain some options that can help you to improve the economic performance that we are looking to obtain with the renovation of the property without having to make a large investment:
- A very interesting option for homes that are already a few years old but whose situation and maintenance are quite adequate consists of carrying out small reforms or improvements both in the furniture of the home, as well as in the lighting or even some decorative elements. In this way, we achieve a much better impression. It is also important that, in case of damages, for example in walls or doors, they are well fixed
- Another possibility is to carry out reforms at a reduced cost when we find ourselves with houses that really need a lot of improvements. We can opt for simple repairs, a good coat of paint and opt for furniture from large commercial surfaces specialised in furniture, household goods and home spaces without having to make a large investment.
- It may be the case that the home really needs an in-depth renovation. It is true that major renovations allow us to update the property and improve its value. These reforms usually range from the floor of the house itself, to reforming the kitchen or bathrooms, or even a new distribution of the spaces in the house.
At MAM Solicitors we have over 30 years experience in helping our clients to manage the sale of their properties, especially when they are not permanently resident in Spain.
If you need any advice, please do not hesitate to contact us.
