Remodeling apartments, generally, is something we usually do to improve spaces or simply transform them completely. But if you have an apartment and you’re planning to sell it soon, you must ask to yourself something very important: Is it worthwhile to remodel the apartment if I’m selling? In our article today, we will help you assess if you really make that expense worthwhile, and if so, how positively influences the sale of the property.
“If you are considering a project for remodeling apartments, ask yourself the following questions: Is it worth the time, the effort and investment I get a benefit, or I’m just doing it for the pleasure of seeing the final result?”
Remodeling apartments
Before selling a property, some people consider remodel to increase its value or just make it more attractive.
To make an informed decision about whether the renewal is suitable or not, the first step is to calculate the current value of your property.
It is always important to have the help or advice of a realtor, as regarding valuation, the real estate agent has extensive knowledge.
All houses and apartments, when being sold, generally have the same structure they had when they were built. However, some people see as a good idea to remodel the property in order to sell it at a higher price, or make it more attractive on the market.
Are you one of those people who are interested in remodeling apartments or houses? Here you can find four steps to make the best sale of the property.
Step 1. Calculate the current value of your home
It is very important that before a renovation for sale, you contact a real estate agent because he can give you a rough idea or can formally request an appraisal. The costs of properties in Panama are variable. However, there are several housing projects in Panama with low costs for being in “gray work”.
It should take into account the location of the property, the square meters, time of use, quality of finishing and maintenance.
Step 2. Find out how much it would after remodeling
After knowing how much costs the property without having been altered or remodeled, the next step is to find out how much is it sold to make improvements. For this, the help of a real estate agent is recommended.
Similarly, you can make a comparison with properties similar to yours in size, and located in the same area. Ideally, these homes have been remodeled or, at least, have better finishes than your home (without having yet gone through the process of remodeling).
Step 3. Make a budget
Remodeling apartments, or in this case, your home, not only helps optimize your convenience, sometimes with an investment of 10% of the property value, but can increase its value to 40%. But for this, you must manage your resources wisely.
The quality and type of finishes, determine the increase, but also depend on the remodeled area: For example, the kitchen and bathroom are key points, but be careful. You need not Plantées if you have planned renewal exceed the value of the home.
“We need to know how much money you want to spend on remodeling. You may already have an approximate expenses, but if not, it is best to analyze what is going to change and how much capital can be.”
Within the budget you going to do, you must include quotes labor and materials that will be required. Do not forget that when you apply several quotes, we must also take into account the guarantee period that offers each.
Step 4. Make calculations
There is an option that can helps you: The potential benefit of the results of renewal, can be solved with the following formula: Potential value of the renovated property less the present value thereof, less estimated costs of remodeling, minus other costs ( such as insurance, operating costs and selling expenses). This is equal to the potential benefit or equity.
Although it sounds hard to make the equation is a value you need to know to make an informed decision. Remember that the resulting benefit, change if inflate the cost of remodeling or evil calculate the potential value of your property. Therefore, it is best to contact industry professionals, realtors, a contractor and even with several suppliers to ensure that your estimate is as reliable as possible.
Would you like to remodel your apartment before selling it? We recommed you to enter in AN-NA Studio Arquitectura for more ideas and tips.
Gogetit Content Manager. Author of important reviews for Gogetit News, “The #1 Source for real estate news in Panama.”
Specialized in the search and analysis of the most important news about real estate in Panama.