Refurbishment before selling a property: when is it really worth it?
Has it been a while since your property was last renovated? Damp cellars, poorly insulated windows or unattractive wallpaper can significantly reduce the selling price. But is it worth investing in renovation or refurbishment before selling in order to increase the value of the property?
1 Decorative renovations: The first impression counts
Small improvements such as painting the walls, new wallpaper or a new floor fall under „decorative“ renovations. These measures are not absolutely necessary, but can significantly improve the first impression. A well-maintained property looks more upmarket and generally fetches a better price. In addition, this work is usually inexpensive, but can make a big difference when selling.
2. functional deficiencies: improve quality of living
More serious defects such as old heating systems or inadequate insulation reduce the quality of living and deter potential buyers. These refurbishments are often time-consuming and costly. Whether they are worthwhile depends on the potential increase in value, which should be higher than the refurbishment costs.
3. calculate costs and value appreciation
For a refurbishment to make financial sense, the costs must be in proportion to the increase in value. Upgrading a simple property to a standard property can increase the price considerably. Experience shows:
- Simple equipment: Reduces the value by approx. 15 % compared to normal equipment.
- Normal equipment: Enables immediate occupation without modernisation.
- Upscale equipment: Can increase the value by 15-20 % compared to normal equipment.
These values serve as a guide. However, a professional assessment by an expert is essential.
4. renovations as a sales booster
Improvement work is often worthwhile, especially for properties with basic fittings. Without these measures, you may only attract buyers who are looking for a bargain. Most prospective buyers overestimate the cost of refurbishment and are therefore prepared to pay higher prices for a property that has already been renovated. Refurbishment often leads to a quicker sale and significantly higher proceeds.
Conclusion: Good preparation pays off
With targeted refurbishment, you can significantly increase the selling price of your property and shorten the time it takes to sell. Professional advice will help you choose the right measures and make a sound calculation.
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Robert Schüßler
Property valuer (EIA and IHK)
Note: This text is for information purposes only and does not constitute legal or tax advice. Please consult an expert if you have individual questions.
