Any renovators out there?

Hi Vern

The simple response is “whatever adds the most value to the buyers IN YOUR AREA”. Chat to a few real estate agents and ask them to ponder the question of the likely sale value of your house as it is, compared to if you changed the windows. Pose a few scenarios and ask them which will offer the biggest resale difference in terms of $$. Also chat to them about which of the options would facilitate the fastest sale, because that is an aspect that will interest them greatly. Quick turnover.

Perhaps you could spend $1000 to make the place look more modern, and add $2000 of value
or
Perhaps you could spend $5000 to make the place look more modern, and add $50,000 of value.

If you are selling your property, your aim is NOT to make the place look more modern. It is to get the most profit. That’s all. To get the most profit. Ideally which appeals to a big market and thus a swift sale.

If the market in your area likes pretty orange windows, but the profit margin is best just leaving them as they are, then you would do that.
If the market in your area is only interested in houses that have windows that look like they are Swiss, then you’d do that.
If the market in your area only wants sash windows, then you’d do that.
If the market in your area likes a few different styles, but one smashes it out of the ballpark in terms of profit, then you’d do that.

You are not there to make someone’s day with pretty windows. You are there to make profit. That’s the cold hard facts of it. So you simply ask the selling agents what the likely resale value would be with different kinds of windows and work your profit out from that. Remember the highest resale does not necessarily mean highest profit, because the highest resale price might have had an enormous renovation bill that eroded profits.

You cannot ask the agent what will make the most profit, just what will be the highest resale. It is up to you to work out profit. The complexity comes in when you ponder that just changing the windows might not cut it. You might for eg need to render the frontage to change the look of the whole facade.

Hi Vern

Yes, however a valuer will value your house based on “comparible properties”. So he/she will compare your house to other properties that are in a similar condition, have a similar aesthetic, and a similar location. So if you want the valuer to put a high figure on your property, you want to make your property “similar to” the ones that are selling for higher prices. The real estate agents will be able to comment on how to make your home look like the ones selling for higher prices.

You probably don’t want to tell the real estate agent you have no intention of selling because he/she will rightfully see they are wasting their time helping you with a valuation. Unless you find a friendly one that understands you aim to release equity and you then use that to buy an investment property in the area, and hope to buy from that particular real estate agent. Then he/she would see merit in spending time on you.

Hope all that makes sense.