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6 Reasons Why House Renovation Will Increase It Market Worth

Are you considering selling your real estate housing investment, but don’t know how its market worth can be increased? Do you plan to sell your house in the future but you are doubting whether or not renovation will help? Well, the benefit of having a home of your own comes with the freedom to renovate it the way that suits you.

So the question now is, have you considered renovating it in such a way to increase its worth and market value? If yes, congratulations and if the reverse is the case, go and do it now – it is never too late!

Sequentially, there is no doubt about it, the real estate industry is one of the fast-growing industries in Nigeria right now and it doesn’t look like the trend will go away anytime soon. while this business sector is lucrative and profitable, it has attracted many influential people to go into the business with full force, after all, owning many houses is assist other than liability.

WHY DO PEOPLE SELL THEIR HOUSE(S)?

This was a question one of my friends asked his brother who is a real estate agents last week. It is not as if he doesn’t know the answer to the question, but he is only curious to know more than he has already known.

So as sour as this question may seem, the following are the few reasons why people put up their houses for sale:

  • Relocation

What do you think will happen to the person who has been working at home away from home for donkey years? Such a person will have to sell the house he built because he is leaving for his permanent home somewhere outside the state of residence.

  • New House

Someone may decide that he want to build a new house that is bigger or smaller than the present one he is having and as such, but the old one up for sale. Although, this usually comes up when the new house has been completed.

  • Bankruptcy

Another reason people sell their house is when they run bankruptcy. In other to clear up some debt, the debtor may decide to sell his house so as to raise more funds to enable him to settle the debts.

  • Succession

Also, in the course of sharing the inheritance, a particular house that is left over by the deceased may be put up for sale because of one reason or the other clearly known to the deceased family.

  • Real Estate Business

The booming of the real estate industry has seen many people owning many houses through investment and development. Hence, a real estate developer will definitely sell off the house he developed in other to recover his capital investment.

From time immemorial, the goal of every real estate investor is for the investment property to increase in value so that it can worth more than the capital investment. So if you’ll be selling a house in the future, consider renovating it because of the increase in market worth it will bring about.

Read Also: Real Estate Business In Nigeria (Full Guide)

REMARKABLE REASONS WHY HOUSE RENOVATION WILL INCREASE IT MARKET WORTH

In case you are still not convinced yet why you have to spend some fortune on a house you are going to put up for sale, be informed that a simple touch of renovation in your house balcony may deny you an added value of tens of thousands Naira to your property’s if you refuse to do it. Take note!

However, if  you are still doubting whether or not to renovate your house before you sell it, do carefully read and digest the following advantages;

  1. It’ll Attract Potential Buyers

Putting up your old-looking home for sale without renovating it will only make it look less attractive to potential buyers and as such, it will either chase them away with such plain look or reduces its market value.

Although renovating a house that is meant to be sold might cost a fortune, but that’s the best way to preserve its initial market worth. As a seller, be informed that a simple touch of renovation in your house balcony, an ordinary change of paint and the refusal to work on the house sewage may deny you an added value of tens of thousands Naira to your property’s if you fail to do it.

Be that as it may, be, you can’t put a house up for sale in Abuja without renovating it and expect buyers to rush it. And also, not all Lagosian can afford to buy a new home and none will at the same time patronize a plain, old and fade house.

So if a house doesn’t look good at the outside nobody will bother looking the inside. Thus, take care of the exterior part of the building as much as you will do to the interior aspect of the house. House renovation entails doing the necessary things to every nook and cranny of the building.

For this reason, if you want buyers to patronize your house before it loses it’s value completely anywhere in Nigeria, the best bet is to renovate it into the latest trend so that it can send your target buyers a message of sophistication and touch of rehabilitation.

  1. It’ll Enhance the Property Capital Return

Other than the fact that house renovation will increase the building market value, another reason why it is very ideal to renovate it before putting it up for sale is that it will enhance the capital return spent on the building initially.

Moreover, if you invite experts and quality house renovators to put in professional touches to your old fashioned house, there’s no doubt about it you will scoop back a greater profit after-sales.

Some people think it’s a crazy idea to renovate a property that one is about to dispose of. They even consider it a waste of resources, but little do they know that renovation of an old-fashion house will enhance its domestic looking appearances and rejuvenate it long lost beauty once again thus, it’ll increase it’s market worth exponentially.

So, therefore, if you are planning to sell your house in Abuja, Lagos or anywhere in Nigeria, ensures you furnish and refurbish it so that you can charge potential buyers a higher price. And subsequently, you will be able to get your investment capital back.

  1. It’ll save You from Embarrassment

Also, you renovate your house before putting it on the sale list will not only boost its market value but it will also shield you from petty shame and embarrassment in the midst of other sellers. Simply put; how will you feel if you have the most outdated and woefully dilapidated house amidst others on the for sale list?

By and large, renovating a house before putting it up for sale helps to avoid any form of tongue lashing or embarrassment in one way or the other either from the potential buyers or the agent that you may handle it over to.

Again, how will you feel if you show your potential buyers the proposed house to be sold and he makes a remark about how old and ugly the building is? You will feel fulfilled, happy, ashamed? Well… I guess you know better!

But if you put on some finishing touches to the house before calling for buyers, it will save you from embarrassment even when it comes to price negotiation. You will feel free to name your price to the prospective buyer without fear of being laughed at.

After all, you have refurbished the building and it looks exactly like a new home. You will definitely feel fulfilled and the confidence to do and undo over the said property will surely come.

  1. It will Boost Market Sales

Similarly, house renovations also increase the property market worth by boosting its market sales significantly. Rather than leaving the faded paint alone, disfigured kitchen uncared for and the living room unpolished, try spending a good fortune on renovation and see how it will boost the property market’s worth and value.

Essence, there are has many houses put up for sale as there are buyers in Lagos, Kano, Portharcourt, Abuja and in other places across Nigeria, but the only way your property can experience the smoothest possible transaction in the course of selling it, with the lowest possible weakness, loopholes or pitfalls in any aspect is by renovating it before sale.

As a matter of fact, it’s far from being a lie that he who wants a beautiful home must be ready to pay a handsome price. As a result of this, many buyers will patronize your well-renovated property and you will have the opportunity to hike the price to your own taste and in the end, you will be opportune to give it out to the highest bidder.

However, it is crucial you know that renovating your house before putting it up for sale entails taking the risk; so your ability to take the risk in rehabilitating the old fashioned house with a substantial amount of money is what will eventually change your story – positively- at the end of the day.

Read Also: How To Make Millions In Real Estate Business

  1. Stand out Amidst Competitors

Can you imagine the number of houses and properties that are put up for sale in Lagos on a daily basis? While there are plethora numbers of houses to be sold in Abuja, Ibadan, Port Harcourt and other capital cities in the country don’t you think your own properties need to stand out?

Moreover, renovating your house before putting it up for sale in the competitive market will make it stand out amidst other available used houses that are also meant for sale. This will give you the edge over others and you will see potential buyers who will be willing and able to pay your price in time.

Certainly, the target buyers will appreciate your own house more than any other because of the renovations. Out of the 100 buyers that might take a look at the available properties for sale, 99 of them will be convinced greatly that you’ve taken good care of yours.

However, when you can easily rehabilitate and put on some finishing touches on the house you want to sell, why don’t you do it now and let the market value start increasing? Do endeavor to do the needful now before your to-be competitors could think of doing the same.

  1. Command High Price

Consequently, renovating a house before the sale corroborates with the economic doctrine of buy low, sell high. This means the money you put in for the renovation will be recouped when you are ready to sell.

We have seen instances in Lagos, where bungalows command higher prices and market worth than a duplex. This is so because the bungalows were refurbished, polished and refurbished before putting them up for sale.

And instances abound in Abuja where an old house, but beautifully renovated commanded a higher price than new ones. This is not a new thing at all and the trend will keep on going that way.

In fact, an old friend of mine told me that he prefers buying a well-renovated house to buying a new one, the reason being that, old buildings are usually stronger than the new ones because of the materials used on them back then were more quality than the new ones. As weird as this may sound, it is the truth.

Well, the bitter truth is just that, buyers wouldn’t mind paying millions of Naira on a well kept fairly used houses so far they’ll be getting the best value of their money in return. So why are you hesitating to work the furniture, paint and the plumbing aspect of your house before selling it?

Read Also: African Real Estate Industry and Green Revolution

EndNote

There are plenty of reasons why you need to renovate your house to increase it’s market worth apart from the above discussed. So endeavor to do the necessary renovation on your house before you call on buyers to check it out.

Ikoi Abode Ikenna
Ikoi Abode Ikenna is a Pharmacist living in Lagos, Nigeria. A fan of entrepreneurship, technology, and web development and seasoned blogger, currently the owner and editor of Abode Business (www.abodebusiness.com) and West Entrepreneur Forum (www.westentrepreneur.com) you can follow him on Instagram @pharmabode

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