May 03, 2023

Renovation can triple the value and speed up sales

The vast majority of Spaniards, and perhaps even more so foreign buyers, prefer to buy a property that is ready to move into, either newly built or renovated. Significantly fewer speculators are looking for a project to renovate themselves and it may therefore be worth investing in making some improvements if you have decided to sell a property. The benefits are both that more people will be interested in the property and that the selling price will increase significantly.

There are a number of parameters that increase the value of a property and most of them involve renovation to improve both appearance and energy efficiency. There are, of course, other factors that come into play such as location and supply and demand, but regardless, a renovation will make your property stand out from other homes on the market and give it added value.

As many as 80% of property speculators prefer to buy something that is either new or renovated, the reasons being that they don't have to do the work themselves and that the condition can affect the bank's valuation when applying for a loan.

According to BARNES Barcelona, a real estate agency quoted by Fotocasa, a complete renovation can as much as triple the value of a property, especially for high-end properties in big cities. An 80 m2 home priced at around €168,000, with a renovation of around €40,000, could increase in value up to €500,000. In addition to the increased profit, sales are also likely to be faster as buyers tend to make a quicker decision when they don't have to do any work on the property and can move straight in.

According to Fotocasa, the following ten parameters can significantly increase the price of a property when it is time to sell:

• Renovating the kitchen and bathroom
• Painting walls and fixing moisture damage
• Improve energy efficiency
• Saving the receipts of the improvements made
• Selling at the right moment
• Facilitate the entry of light into the home
• Use a professional estate agency
• Well-maintained garden or terrace 
• Smart improvements to the floor plan to create the feeling of a well-planned home
• Renovation of floors

Source: www.fotocasa.es