Should You Renovate Before Selling Your Home
Whether it is in the form of a classic real estate sale or a life annuity sale, you can proceed with the sale of a house to renovate. This situation offers you the advantage of selling your home quickly (price lower than those charged for properties in good condition). Therefore, potential buyers are more numerous and free to carry out the work they wish to do to bring their new acquisition up to their taste. See below for more details.
Estimate of the work
When selling real estate, it is essential to estimate the property’s price reasonably to sell quickly.
However, for the sale of a house to be renovated, you must not forget that the work to be done is part of the price.
To estimate the value of your property and reassure future buyers, it is therefore important to correctly evaluate the work to be done. To do this, do not hesitate to call on the services of building professionals.
Work on the shell (facade, frame, roof, insulation) is more expensive than finishing touches (electricity, gas, plumbing).
The electrical work can be more or less numerous: change or installation of an electrical panel, installation of a ground connection, installation of a differential circuit breaker.
The state of the equipment is also to be taken into account (boiler, heating system, ventilation, change of the hot water production) to estimate the global amount of the work.
The renovation of the water rooms represents an additional cost (change of the kitchen, repair of the bathroom).
For your information, it is necessary to count around:
– 1,000 $/ m² for a bathroom renovation;
– 600 $/ m² to redo partitions;
– 400 $/ m² to renovate the floors;
– 90 $/ m² for wall insulation;
– 100 $/ m² to repaint walls;
– up to $250/m² to redo the ceilings, depending on the type of materials chosen;
– $1,000 to change a window (the price is likely to be higher for double glazing or a window with acoustic insulation).
Do not hesitate to present your estimates to future buyers and show them the plans of the house after renovation. This is the best way for them to have an idea once the work is done. New technologies make things easier by offering the possibility of viewing the work in 3D.
Note: Do not hesitate to recommend quality professionals if you know any.
Formalities for selling a house to be renovated
To sell a house to be renovated, you will have to carry out the formalities specific to the mode of sale, which remains identical to that of a home in good condition. Specialized websites have been created, and informed do-it-yourselfers are very sensitive to this. Do not hesitate to use this channel to gain visibility.
First of all, define the sales method you want. Here are the possibilities available to you:
– classic sale;
– sale in life annuity;
– exchange of goods;
– real estate auction;
– sale with a repurchase agreement.
In all cases, you will have to carry out the technical diagnoses of the house, even if they will be different after renovation. They are indeed mandatory. Your buyer will have all the possibilities to realize energy-saving works. So don’t worry about the results of the diagnostics you present. Remember to carry out these diagnoses as soon as the property is put up for sale because you will have to provide
– the energy performance diagnosis as soon as the real estate ad is published;
– the other technical diagnoses as soon as you sign the sales agreement.
Please note: often, when you use a real estate agency to sell your property exclusively, the agency offers these diagnostics. And the relationship of trust that you build with the agency is favourable to the sale. The agency will be motivated to finalize the transaction in the best conditions and answer your buyer’s questions.