Agents giving sound advice can be one of the smartest ways to add value to their relationships with their clients and something that they can truly benefit from.
There will always be a time when homeowners need to consider renovating their homes for some reason, such as planning to sell their property or just to have a fresh new look or change of scenery.
There’s no doubt that entertaining such ideas for an upgrade may be enticing but it can also be a bit intimidating on several aspects such as cost, time, and effort that require a strong commitment.
This is where the role of a real estate agent can come in, by providing smart and practical advice to help clients weigh their options if they are in doubt whether to push for a renovation or not.
With proper and careful planning, you just might be able to successfully and satisfactorily help a client complete a renovation project without causing too much trouble on their hands.
Aside from aesthetics, structural stability, and condition of the home, it feels a lot fulfilling and satisfying to help a client overcome the challenges of home renovating.
Here’s how you can leverage some practical and wise insights to help them make the best decisions.
Conduct a thorough inspection
It all starts with a thorough inspection of the property, particularly in areas where it may likely need more attention or where it shows visible wear and tear. As much as possible take photos of sections needing improvement or repair to visually assess trouble spots a bit more when assessing a proposed renovation project.
Organising and setting the right priorities
Identify target areas and list down the areas needing improvement the most, which can help in evaluating options in terms of time, cost, and labour.
Setting a realistic budget
It is always important to be realistic about the renovation budget and ensure that the client can afford to spend for it and should be relative to their current cash flow and disposable income. The beauty of budgeting is that they will have a good idea of how to programme their renovations systematically.
Remind them to make sure they only spend for what they can afford. There may be times they can overspend a bit due to unplanned incidentals, so make sure to set a certain amount to factor it in.
Breaking down the costs
Before spending after setting a budget, go back to the target areas for repairs or renovation. Make a list of the materials and labour components of the renovation project. This will give clients an idea of how they can apportion and monitor their spending.
Itemise and break down each component of the renovation project so they can see an image of the project in progress, prepare, and have spending control over the project.
Determine and focus on a goal
Going through a renovation project can get people carried away easily and could cause them to overdo the project beyond what was originally intended.
Make sure they have an end goal set for the project and make sure they stick to it. This also happens with some real estate investors when flipping a house intending to sell it for a higher value in the future.
While it may be a good plan to consider, they have to factor in their budget which must be within tolerable and realistic limits.
Should they consider taking out a loan to fund the renovation project beyond their initial budget, they need to seriously consider their ability to pay and indicate their plans for the property before making rash decisions.
Always be realistic
Advise them to stick to what they can manage and not go overboard in terms of cost and time options. Always weigh the pros and cons of a renovation project, especially when weighing their finances so they can achieve the best financial returns.
For instance, instead of spending on landscaping, they may consider prioritising the renovation of the kitchen or bathroom, which can add more value to the home. If they are looking to invest in leisure and enjoyment without expecting monetary revenue, then a pool or spa could provide them with the recreational aspects of the project.
Spending money wisely
It is best to know where they can spend more or save money on their renovation project. Generally, it is acceptable to never sacrifice the general layout of the home. Focus on a well-designed physical space since this cannot be easily changed once it has been done lest it could cost them more to make last-minute changes.
Convince them to channel their investments on permanent fixtures and structures that can help them save money in the long run, such as flooring, woodworks, countertops, etc. These can help them save money in the long term.
They can also consider saving money on premium items such as lighting fixtures, furniture, or home appliances. These items often lose a lot of value over time and could lose functionality.
Sellers may consider investing in design or home components that could maximise natural light in their property and save up on power usage during the daytime.
It is always important to know how they spend their money and face the realities of considering home renovation projects when the need arises. Rather than be intimidated by the prospect, knowing what to do, how to plan, and how to spend for it may even make it more fun and exciting.
This makes it more practical for sellers to weigh their options properly and judiciously, thanks to your sound real estate advice.