Maximise The Returns On Your Investment

Some real estate investors choose to buy a property and renovate it before reselling it at a profit. Such transactions are known as “flips.” You might sell your property at some point even if you adopt a buy-and-hold strategy. Maximizing the sale price of your property when you put it on the market can help you realise capital gains.

Renovating Prior To Selling Your Property

Renovations that take into account your property’s marketability can increase its value. Aim for improvements that will appeal to a wide range of buyers and get quotes from builders on the project’s likely cost. Local real estate agents can give you estimates of your sale price after the renovation.

It is a mistake to overcapitalize renovations. This means that injecting money into a house may not yield the higher sale price you are hoping for. Evaluate the costs of the renovation and compare it to the likely increase in market value of your property to get the best result.

Selling A Property When Tenanted

When renting out property, one important decision to make is whether or not to sell with a tenant in place or wait until the lease has expired.

Rent payments can continue until the property is sold if it is tenanted, which helps with financial consistency. Tenancy also may appeal to some buyers—they receive rent from day one if they are property investors!

If you are opting for the tenanted option, you will need to arrange inspection times around the tenant. Selling while tenanted means you also have less control over how well the property is presented. One option you may want to explore is asking the tenant to help prepare the property for open house viewings by agreeing in advance to lower their weekly rent.

Sellers of property to owner-occupants might also be concerned about having to wait for the lease to expire before they can move in. Be sure to give the tenant plenty of notice in writing that the property is being sold.

You can do some repairs or upgrades on the property before you put it up for sale, with or without a tenant.

When putting a property on the market, first impressions count. A fresh coat of paint can make a huge difference to curb appeal, so make sure you give your home’s exterior a little TLC. Painting fences, cleaning the driveway and adding a new letterbox will increase visibility and make buyers more likely to notice your property. Repainting inside and out is a quick and easy way to minimise the visuals of wear and tear. Stick to light but neutral tones so the new buyer can imagine how the property would look if they repaint.

If the property is untenanted, you can also consider home staging. This may add to the cost of your sale significantly, but it can create a more ‘lived in’ look and give buyers a chance to see the property at its best. Your agent likely has contacts and ballpark pricing details for home staging consultants.

When scheduling an inspection of a property you are interested in, speak with the agent about the best times for inspections. You should aim to time inspections for when the interior receives plenty of natural light and looks most pleasant inside.

It’s Finally Auction Day, What Next?

The best method for selling your property is an important decision and involves a range of options including auction and private treaty. Your agent will advise you about the options.

Sellers can set a reserve price, which is the minimum price they will accept. The upside of auctions is that sales are normally unconditional, which means the buyer is committed to going ahead when the hammer falls. The highest bid could far exceed your expectations depending on market conditions, meaning you could end up with a higher capital gain than anticipated.

When deciding on a reserve price, consider your agent’s advice. If you set the price too high, you might risk having no bids for the property—even if there are plenty of interested buyers. A good practice is to keep an eye on what’s happening in the local market before the auction. You might want to factor in that potential buyers being spoilt for choice and may be less willing to actively compete at auction if your property is one of many listed for sale.

If a property does not sell at auction, you may be responsible for paying costs like the auctioneer’s fee. You should also consult your agent about the next steps.