How To Renovate For Profit In The Country

8 Must Do Rules For Success.

 

Do you live in a country area? Would you like to renovate for profit?

If so this is the blog for you and will show you how to renovate for profit in the country.

These 8 rules will ensure you’re on a one way road to success.

8 Must Do Rules for Success.

 

1. Budget

Work on a thorough budget. 

 

It’s well and good to have dreams of the perfect home but at what cost?  Having renovated many, many homes both privately and for clients, the most important part of a renovation happens way before a tool has even been picked up. Having a thorough budget is the most important thing to do.

Don’t know where to start? Confused?

The first step is to look at scope.  Renovations come in all sorts of sizes, large, small or somewhere in between. Write down what you want.  Make a list of things you must have. And make a list of things you would love to have.

Download our renovation template as a guide to follow.  Mapping is essential and being well prepared is the key to a successful renovation

All About Quotes

Three quotes are essential for comparison. Read all details and if unsure ask a lot of questions.

Some quotes are very detailed and show clearly what is included and others can be a little bit muddy in regards to details.  You really don’t want to be slugged for any extras if you haven’t budgeted for them.

Some builders will quote standard prices. An example are tiles in a bathroom.  Your expectation may be that you’ll get those beautiful mosaic tiles from morocco. In reality the quote is for average, run of the mill tiles.  The price difference can be significant and will be added as an extra.  If this happens everywhere you turn you could be looking at thousands of extra dollars. Not a fun surprise.

Contingency Plan- How Much.

A contingency plan is essential so budget at least 10-30% of the final cost.  This will cover any unforeseen issues that may arise.  Better to be safe than sorry.

Building Contracts

Read your building contract thoroughly before you sign. Don’t sign unless you are very happy with the details.

Be budget ready, organised and have clear very clear expectations. These three things will help keep your budget on track.

2. Never Over Capitalise & Research the Market

The term “over capitalise” means to improve a property beyond its resale value.  Very simply if you spend too much on renovations and decide to sell you may not make your money back.

Thoroughly research properties in your area.  Drive around and see what they have to offer.

Don’t create a rendered style mansion and spend so much on your place it stands out like a sore thumb if you live in a humble country street filled with families and weatherboard homes.  Beautiful as it is!  See what I mean?

NEVER OVER CAPITALISE

It will:

a) Take a long time to sell 

b) Sell for a lot less than you spent. Less profit will be made if any.

c) It’s not a smart way to maximise sale potential.

3. Target Your Market

Hone in on your target market to attract small specific groups not large audiences. Focus your energy and ask these questions?

• Who are you trying to attract to your home?
• What age group?
• Single or families?
• What sort of lifestyle, interests are on offer?
• Retirement living, new home buyer, downsizing?
• Check out competition.

There is simply NO point in targeting the wrong group. It’s a waste of time and money.

We live in a country area and the homes we renovate are all targeted at people who are looking for the dream of rural living. Queensland is where we live and Queenslander’s are what we do best. Nothing like a charming quintessential, rambling country home to tug at the heart strings of a country lover. Sell the dream!

 

We try and make our homes beautiful yet very functional, spacious (for larger families) yet cosy.  We don’t use white tiles and white grout. White grout is an issue if regular bore water is used. Nothing like stepping into a new bathroom and seeing red stains all over white grout -NOT.

I style rooms in a classic and colourful way to let buyers know they don’t need to live preciously. I don’t want them worrying about dusty country kids and their friends ruining beautiful white carpet or animals destroying dainty furniture.  Precious and country living just don’t go together in my humble opinion.

4. COSMETIC vs STRUCTURAL – Which one and why? How to renovate for profit in the country.

Cosmetic renovations are smaller renovations that create a visual lift.  A structural renovation is more substantial and usually involves changing the floor plan and knocking out walls.

If you want to renovate for profit (it can be done in country area’s with flat markets) my advice is to favour a cosmetic renovation. Having renovated property in many parts of the Darling Downs and South West Queensland the real estate market’s we have worked in have often been flat or sluggish.  We wouldn’t have made the same money if we had structurally renovated.

Cosmetic Renovations-Create a Visual Lift.

 

Some country areas (not all) can have long periods of sluggish activity.  If you overcapitalise by doing an unnecessary structural renovation it can take a lot longer to sell- sometimes years.  I have literally seen homes sit on realestatee.com for years not selling.

A good structural renovation can maximise sale potential but only in the right circumstance and if your home is poorly designed and needs a more liveable space.  Structural renovations deserve a great deal of thought, budgeting and reasoning before going ahead.

Structural Renovation- Changes A Floor Plan.

How To Renovate For Profit In the Country

Cosmetic Renovations Include:

• Painting.
• Changing kitchen cabinetry (not the structure just replacing doors)
• Updating lighting.
• Replacing old carpet
• Wallpapering
• Updating old and rotting timber windows to aluminium.
• Fixing cracks in walls, no more gaping.

5. Modernise Anything Outdated, Make Old New.

If you’re looking to renovate for profit a must is to update anything that looks old and tired.  Buyers want to feel inspired.  Don’t give them a green light to offer a ridiculously low price.

Creating a fresh, modern palette will instantly attract potential buyers and make them linger- not run out the door.

As I have mentioned painting and doing it yourself is one of the best and cheapest ways to modernise anything outdated. If it looks tired, grotty or just well blah -paint it.  There is truly something magical about a coat of fresh paint.

There are other things throughout your home you can modernise that won’t cost a fortune and can be done in stages.

• Try painting your kitchen if it’s structurally  sound.  Perfect for tired and dated kitchen cupboards.

• If not possible replace the doors. Replacing a chipped benchtop will transform an outdated kitchen.
• Paint an old kitchen splash back or buy kitchen decals
• Replace old taps with a modern version
• Throw out old carpet or if in good nick steam clean them.
• Replace old, stained curtain and blinds.
• Paint old outdated furniture. There are plenty of beautiful furniture paints out there: Mezzie and Frank and Dixie Belle paint are examples. Amazing products with vibrant colour ranges.
• Update rooms with modern home decor.  Cushions, throws, art.

6. Create Street Appeal

First impressions count. Creating street appeal is a sure-fire way to maximise sale potential. Make sure potential buyers fall in love with your home. 

 

Make sure your home is freshly painted.

A lovely bright modern colour will delight buyers. The fresher the better. If you are not sure what colour to paint look at colour charts at your local hardware store.  The ideas are plentiful.

Fancy Fence

Make your fence looks fabulous by adding a hedge or even putting up a picket fence just make sure it’s something a little bit fancy.

Create a charming entry to the front door.

Create a charming entry that links the outside to the front door.  Make people excited to reach the front door for a peek inside.

Manicure your lawn and invest in some landscaping.

 

Whatever the look you’re going for make sure it’s neat and tidy.  Country areas are prone to drought. A well thought out garden full of thriving greenery will seem like an oasis and a lush lawn will feel relaxing and luxurious.

Colour your front door.

Make your front entrance stand out and create WOW factor by painting it a vibrant colour. Add some greenery with potted plants on either side.  Add colour with flowering annuals.  A distinctive door knocker will finish the look.

Fix any issues with your roof and/or downpipes.

Pressure cleaning your roof can make an amazing difference and if you have never thought of painting your old tin roof this too can make a dramatic difference.   Get the professionals in for this one. Fix anything broken. Make sure gutters are free of leaves and downpipes are in good working order. 

Clean, tidy, clean tidy repeat.

 

Make sure all windows are sparkly clean and put away any mess. Hide ugly practical things.  Go to the dump with any rubbish no one wants to see it laying around.

Add some creative lighting.

This is something I need to do better.  Ambience is important and lighting makes your garden look stunning at night.  Potential buyers may drive by after work and it’s well worth the effort to think about this.

7. Styling Matters Your Taste Doesn’t.

Some of you may think this is not a rule to follow.  You may think your taste is perfectly fine and well yes it could be.

This rule is very important to follow.  Buyers don’t want to see anything too personal or stylized. It can be a big turn off. Rule of thumb – absolutely style your property but make sure it’s to attract your target market not to boost your ego.

Don’t do a structural renovation if it’s not going to add value to the home. If you’re wanting to sell for profit you need to have a good solid shell. One that enhances the homes design. You don’t want to build something that may detract from the appeal of the home.

Spend money on fittings and accessories in areas seen the most.

 

The clue here is to spend money on fittings and accessories in areas seen the most.   Buyers will love up to date bathroom fittings and fixtures, beautiful oversized windows that look onto a lovely garden space, a state of the art oven, elegant lighting I could go on.

8. Give Buyers More. Surprise them with extras.

My mother taught me this rule.  She said many times, ‘give buyers more’. Out do your competition and surprise them with extras.

This works well in flat markets.  I will tell you how.  If there are five homes of similar style and value on the market in a small country town and a potential buyer comes along for that long overdue home inspection what are you going to do to make your home stand out?

Hmmmm it’s not about spending a lot of extra money you just need to think long and hard and ask this one question.

What would a potential buyer REALLY LOVE to have in this home that other homes don’t have?

Now brainstorm and write them down. 

This doesn’t need to break the bank you can be creative about it.  I’ll give you a few ideas to get you started, focusing on country living.

• If renovating a kitchen make the oven a priority. Get a huge family sized one and make it a number one priority. Put in two wall ovens if not enough space.

I have worked primarily with women for the past 30 years and I can say without a word of a lie that preparing food, baking, cooking, recipes are all daily topics of conversations.   Oven’s sell houses people.

     If you think you can’t afford it prioritize a few things. Think about using high gloss laminate for bench tops. Costs a lot less than stone and looks amazing.  The savings alone will be enough to buy that big oven.

 

• Create a fire pit area- if you have a dull looking part of the garden why not create an inviting fire pit area.   Adding fairy lights and outdoor chairs will be just what buyers are looking for.

 

• Create “WOW’ factor that gets the buyer to say “Oh I love that”. Take a bit of a risk and wallpaper a wall that compliments the style of the home! Mosaic some stepping stones in the garden. Some will love it and some may hate it. It may be the one thing that makes them choose your home over competition.

 

This pretty wallpaper/mural is from Natty and Polly

 

Best of Luck!