For many home buyers, the idea of buying a fixer upper you can transform into the house of your dreams is an alluring prospect. Indeed, it has often been associated with allowing buyers to get their “foot in the door” of a good suburb at a more affordable price. But how do you know if this approach is the right fit for you? Be aware of costs First and foremost, you need to critically assess the level of work required and make sure you have a thorough understanding of how much it will cost to make these improvements. Be diligent with your financial estimate. It’s better to prepare yourself to spend more than strictly necessary than it is to underestimate costs. In this regard, it is a smart decision to hire a REIWA buyer’s agent to help you navigate the purchase as their expertise can provide valuable insight and assistance. Be realistic The scale of the project you undertake will largely be influenced by the age and condition of the house. Does the home just need a fresh coat of paint and some new fixtures and fittings? Or does it need more extensive upgrades like bathroom and kitchen renovations, or retiling? Don’t enter into a project that you can’t see yourself completing. Renovating a fixer upper is time consuming so be sure you have properly considered the work effort involved and can commit to the scale of the upgrade. Prepare yourself for the unexpected Anyone who has ever renovated will tell you that you need to prepare for the unexpected. There can be plenty of unknowns when embarking on a renovation and you are likely to be thrown some curveballs. Be prepared to roll with the punches and make sure you leave some wiggle room in your budget for surprises. When approached and executed correctly the experience of buying a fixer upper can be extremely rewarding. You have the opportunity to convert a run-down home into a show stopper and increase its capital worth. If you’re considering renovating, be sure to speak with a local property expert about your options. Source: www.reiwa.com.au When you decide to sell your home one of the most important factors to establish is its likely market price. The old adage that “there is a buyer for every property” is true, but this naturally relates to price. To determine overall market worth, consideration ought to be given to both the land and dwelling components of the property. Features that add value Establishing the market worth of land can be a more straightforward process than working out the value of a building whereby considerations around depreciation become a factor. When estimating the value of a building itself, the property’s features, build quality, size, floorplan and external features all impact on establishing its value. There are a number of features in a property typically desirable in the Perth housing market. Bedrooms The number of bedrooms remains a key factor in forming a buyer’s decision. Over the last 50 years the number of bedrooms in the typical home has doubled from two to four, yet the average household size has decreased with many homes today occupied by only one or two adults without children. Regardless of our shrinking household size, the desire for larger homes remains strong and the market often disproportionately values four bedroom homes and three bedroom apartments. Extra bedrooms offer flexible lifestyle options and buyers are aware of re-sale appeal. Bathrooms When it comes to buyer interest, the number of bathrooms ranks as the second most important feature. The market greatly values a second bathroom or ensuite. Storage Storage is an underrated influence on the value of a home. We are living in smaller households but accumulating more possessions. Homes with plenty of storage space are likely to be more highly valued. Home theatre The common “games room” of the last two decades has given way to home theatre. Large flat screen TV’s with surround sound units and comfy chairs demand their own space. Increasingly, this is becoming a central feature of the modern home. Parking Suitable car accommodation is important, but doesn’t rate as highly as living areas. The value of a lockable double garage with internal access to the home varies in different locations. In older suburbs where room for expansion around the home is limited it might be viewed as dispensable, but in newer areas a large garage is now a standard feature. Outdoor entertainment Our climate is ideal for covered areas that open to the yard and perhaps overlook a pool. A quality, functional and protected space in the yard which expands the living area of the house and merges the garden with the home are also highly desirable. If you’re thinking about selling, enquire with your local agent about what price properties like yours are selling for in your local area, and importantly what features are most desired by the buyers. Source: www.reiwa.com.au What Features Add the Most Value to a Home? Should You Buy a Fixer Upper??