Relocate Vs Renovate
So many families find themselves debating the 'Relocate Vs Renovating' topic as our lives change into different stages and we have different needs for our homes.
Have at look at our 'Relocate Vs Renovate' debate to make sure you have all the facts.
Selling your home is a daunting process and one people often go into blind, especially when it comes to fees and charges or what you might need to do on your property in order to sell it or reach the price range your looking for.
Financially these are the things you need to consider:
Real Estate agent fees can from 2.5% - 4% of the value of the sale.
Plus advertising fees which include professional photography, signage, online advertising etc. that are on top of the agent fees if not included - usually the lower the agent fee the more likely advertising fees will be on top (fees can vary from $2,000 - $5,000)
Solicitor or Conveyancer fees
Mortgage discharge fees
As well as possible cosmetic make over costs or major upgrade costs (Any real estate agent will be giving you the advice to declutter, freshen & lighten up your décor, consider a professional cleaner to give new life to your kitchen and bathrooms, give the home a lick of new paint and spend some money on the outdoor areas to create the dream or to allow buyers to see the potential that they are looking for).
Plus there are things to think about that no one likes to mention like is your home compliant or 100% council approval? If you have any un authorised structures or building works that could cost you money getting it retrospectively approved or taking money off the price of the property in order to sell it.
And we haven’t even got started on the costs to finding your new home yet, which will include:
Stamp duty fees
Solicitor or conveyancer fees again
Building inspectors fee
Termite inspection fee
And we can’t forget the actual cost difference between the sale of your home to the purchase of your new property. Let be honest, no one buys a new property for the same price as their property was sold for.
And lastly of course once you've found that new home theirs moving fees to consider to
Packing boxes costs
With all this in mind:
Selling’s fees for a $500,000 home are roughly $20,000
Buying a new home fees for a $650,000 home are roughly $29,351.60
And I won’t even both looking at removalist fees, I think you are starting to see its adding up.
We almost have $50,000 in fees plus the additional money you would spend on the property itself.
Renovating or extending your home can be a daunting process too but it doesn’t have to be and we are here to help.
Obviously, costs can vary depending on the type of renovation you are looking at and the size however I have some generic costing information for you.
Our upper floor addition starts from $99,000 for an additional bedroom and bathroom with the average upper floor addition costing $200,000 for an additional 2/3 bedroom, 1 bathroom and living area.
When it comes to adding value to home the greatest return is on adding square meterage. An upper floor addition is the best way to add square meters to your home and not lose your backyard or front yard area which guarantees you the best return on selling your home.
According to the HIA the average Kitchen renovation cost in 2015/2016 across Australia was $21,862 and the average Bathroom renovation cost was $17,779.
When you do the maths here, you can certainly see for the money it will cost you to relocate you could renovate and be getting better equity or increasing the resale value in your property.
Written by Tara Scott.