As a pre-sale renovation specialist, my goal is to add value to homes. In the recently sale of a Sydney area, I did just that.
In this post, I’ll be sharing all the details of the Sandringham NSW pre-sale renovation which saw an added value of $370,000. Let’s take a look:
Details
Location: Sandringham NSW, a small suburb just south of Sydney airport on Botany Bay. It’s a quiet neighbourhood yet very close to major motorways, 15 minutes to the airport and easy access to the CBD. The house is one block away from the water and very close to great cafes.
Property type: House
Pre-renovation it was a 4 bedroom, 3 bathroom double storey house with a separate studio unit. The layout was really confusing and currently appealed to a very specific buyer.
Here’s what we did to add value to this Sydney home
- Restored the home to one family by removing the upstairs hallway wall separating the spaces.
- Full renovation of the family bathroom
- Demolished the studio kitchen and turned it into a 5th bedroom
- Added double glass doors to the sunroom (previously used as the studio bedroom area) to turn it into a dedicated study
- Turned a cupboard into a walk in pantry (previously used as storage and oddly for a working bathtub)
- Added an outdoor kitchen
- Re-did the walk in wardrobe built ins
- Interior paint throughout
- Various small projects
The timeline for the renovation was 8 weeks and the initial budget was $100,000 total.
Pre-Renovation Value
Here’s where the project was tricky.
Three real estate agents valued the property, ranging from $3.3-3.8 million.
However, only one agent provided comparable sales. When we looked closer, however, they weren’t really comparable. The ones in the suggested range were all brand new construction. Then he provided ones that were considerably lower. A few were OK comparables but others were single storey homes with DA plans in place. That’s not the same buyer.
Luckily my strength is in running comparable sales. I found 3 similar in age, size and condition which ranged from $2.8 million – 3.3 million.
We ended up splitting the difference and choosing a pre-renovation value of $3.05 million.
How the Renovation went
Everything went according to plan on this renovation.
The renovations were completed as estimated in 8 weeks. We came in under budget, spending a total of $92,500.
There were even some “nice to have” projects like the outdoor kitchen and wardrobe built ins that we were able to complete because other items came in under budget.
As you can see from the pictures, it also came out beautifully. If you’d like to see more details, you can check out the blog posts on the bathroom, study and 5th bedroom.
Did we add value to this Sydney home?
Yes!
After a 3 week sales campaign, we had 8 registered bidders at auction and sold for $3.42 million, which was in my post-renovation estimated range.
Now let’s talk about the added value:
- Pre-sale renovation value: $3.05 million
- Renovation costs: $92,500
- Sale price: $3.42 million
- Added value: $370,000
- Additional profit for the seller: $277,500
- Return on investment: 333%
I also want to point out that the home sold in 26 days, which is lower than the market average of 39. Having 8 registered bidders was also a success.
The pre-renovated home would have been a harder sell. So not only did we add value, but we made it a much quicker and easier sale. We addressed potential objections before it went to market and ultimately attracted more buyers.
Conclusion
I’m incredibly happy with how this project went. Not only did it go according to plan, coming in under budget within the estimated timeframe, but we also added $370,000 in value to this Sydney home. More importantly, the seller made an incredible profit!
This is just one example of the kind of work Wealth House can do – and with a renovate now, pay at settlement program and full service (I handle everything!) there’s no reason why any home seller or real estate agent can’t use my services.
If you’re curious whether you can add value to your home, simply schedule a consultation.
