Hi. My name is Rachael Goldsworthy, and I’ve just come from a house in South Windsor. The owner has just settled in the last couple of days, and they’ve purchased a home from another agent who had a mortgage in possession sale. They have managed to secure the property a little bit more affordably than normally, so they got a bit of a discount on the sale price. Want to do it up quickly and then turn the property over. Often i find my clients ring me up and ask me what they could do to improve the value of the property, and turn it over quickly so that they can get a good return on it.
It’s really important when you’re doing these sorts of promotions, and also sorts of renovations that you do the right renovations because if you spend a lot of money with the principal and of putting things there that you would ordinarily like if you lived in the house, I can tell you right now you’re not going to make any money on the property. The reason being is we get involved with the process. We get emotionally attached to the process, which is okay, but equally is a lot of money involved when we like things that we like, and we put them in the homes and then they just cost us a lot more money.
I guess my advice to you is when you’re renovating a home for profit, make sure that you don’t spend it as though you were going to live in it. For example, in the kitchen instead of a particular style of appliances, stainless steel appliances, just go for the low end or the middle range as opposed to the top end. You wouldn’t be going for the De’Longhi. You would be going for something like Whirlpool or Westinghouse. Still good brands. Still recognised by the buyers as good brands, but it won’t cost you as much, and you’ll be able to get a higher profit on the sale process.
That’s I guess in essence what I’ve been looking at. Make sure that when you are renovating for profit that you look at the costs. Also, do a layout of the costs, what you’re looking at promoting, what you’re looking at renovating, and then do that list. Then from that list, work out what the costs are and find out what’s a priority and what’s really just a wish list, so that you make sure you do the priority items prior to doing the wish list and that way you won’t run out of money prior to putting the house on the market. And you’ll make a nice little profit for yourself. All right, well I’m Rachael Goldsworthy, and I look forward to catching up with you on the next video.