1st impression is last impression

Property condition has a significant influence on property value, most sellers/renters at least make minor repairs before putting a home on the market, while others make significant repairs or renovations to increase appeal. However, selling a property “as is” means selling/renting it without putting any work into it beforehand. Essentially, what you see is what you get with an as-is property.

Many people sell their properties as is because they don’t have the time or funds to fix the necessary repairs. After all, several costs go into selling a desirable home.

If you’ve ever sold a home before, you know it takes a lot of time, money, and preparation to ensure everything looks perfect. Sometimes it takes repairs, renovations, and touch-ups to make it look more appealing to buyers. But what if you skipped all those steps and sold it as is? It definitely saves time, but is it worth it? how much you may lose selling a property as is?

• Lower Selling Price- While you save money on skipping repairs, you can’t price the property the same way you would if it was in better condition. As such, you could lose money by selling it below market value.
• Fewer Interested Buyers- Depending on the state of the housing market, you could have fewer buyers interested in an as-is property. Generally, listing a property “as is” is a red flag, causing buyers to assume that the home requires several upgrades.
• Potential Appraisal Challenges- If a buyer uses a loan to finance the purchase of your property, the lender will likely require an appraisal. The lender may not approve a loan if the home has structural, safety, or health concerns. Ultimately, this could lead to an appraisal gap between the asking price and mortgage evaluation, which someone will have to compensate for.

It has been noticed in recent years, that lot of landlords in kingdom of Bahrain struggle to rent or sale their properties due the ignoring to refurbish or renovate it they end up to reduce rental /sale price and paying higher service community charges  Remember home seekers (tenant or buyers) perceive about the property while looking at its condition, some properties in bad condition (e.g not well maintained, not cleaned, with mold or fungus on walls ceilings, with bad paint or older furniture etc.) wouldn’t attract a tenant or buyer even the property located in good community.  

Here are few benefits of renovating your properties to increase the worth of your property and to gain better ROI. 

# Financial Benefits

1. Increased Property Value: Upgrades can significantly increase your property’s value, making it more attractive to potential buyers or renters.
2. Higher Rental Income: Upgraded properties can command higher rental income, providing a greater return on investment.
3. Improved Resale Value: Upgrades can make your property more desirable to potential buyers, leading to a faster sale and higher resale value.

 

# Enhanced Livability

1. Improved Safety and Security: Upgrades can include safety features like security cameras, alarm systems, and emergency exit signs.
2. Increased Energy Efficiency: Upgrades like insulation, double-glazed windows, and energy-efficient appliances can reduce energy consumption and lower utility bills.
3. Enhanced Comfort and Convenience: Upgrades like modern appliances, new flooring, and updated fixtures can make your property more comfortable and convenient to live in.

 

# Competitive Advantage

1. Stand Out from the Competition: Upgraded properties can stand out from the competition, making them more attractive to potential buyers or renters.
2. Attract Higher-Quality Tenants: Upgraded properties can attract higher-quality tenants who are willing to pay a premium for a well-maintained and modern property.
3. Reduce Vacancy Rates: Upgraded properties can reduce vacancy rates by making them more desirable to potential tenants.

 

# Personal Satisfaction

1. Pride of Ownership: Upgrading your property can give you a sense of pride and accomplishment.
2. Improved Quality of Life: Upgrades can improve your quality of life by providing a more comfortable and convenient living space.
3. Sense of Community: Upgrading your property can also contribute to the overall aesthetic and value of the neighborhood, fostering a sense of community.

 

Here are some suggestions for landlords to increase property value:

# Cosmetic Upgrades

1. Fresh Paint: A new coat of paint can instantly brighten up the property and make it more attractive to potential tenants.
2. Updated Fixtures: Replace outdated lighting, plumbing, and hardware fixtures with modern and stylish ones.
3. New Flooring: Install new flooring, such as hardwood or tile, to replace old and worn-out flooring.

# Functional Upgrades

1. Kitchen Renovation: Update the kitchen with new appliances, countertops, and cabinets to make it more functional and desirable.
2. Bathroom Renovation: Renovate the bathroom with a new vanity, sink, toilet, and shower or bathtub to make it more modern and appealing.
3. Add Storage: Install shelves, closets, or storage units to provide more storage space for tenants.

# Energy Efficiency

1. Energy-Efficient Appliances: Replace old appliances with energy-efficient ones to reduce energy consumption and lower utility bills.
2. Insulation: Add insulation to the attic, walls, and floors to reduce heat loss and energy consumption.
3. Double-Glazed Windows: Install double-glazed windows to reduce heat transfer and energy consumption.

# Safety and Security

1. Security Cameras: Install security cameras to provide an added layer of safety and security for tenants.
2. Smoke Detectors and Carbon Monoxide Detectors: Install smoke detectors and carbon monoxide detectors to ensure the safety of tenants.
3. Emergency Exit Signs: Install emergency exit signs to provide clear exit routes in case of an emergency.

# Outdoor Improvements

1. Landscaping: Improve the landscaping by adding plants, trees, and flowers to make the property more attractive.
2. Outdoor Lighting: Install outdoor lighting to provide better illumination and safety for tenants.
3. Parking and Storage: Provide designated parking and storage spaces for tenants.

# Technology Integration

1. Smart Thermostats: Install smart thermostats to provide tenants with more control over the temperature and energy consumption.
2. Smart Locks: Install smart locks to provide tenants with keyless entry and added security.
3. High-Speed Internet: Provide high-speed internet access to tenants to make the property more desirable.

# Additional Tips

1. Conduct Regular Maintenance: Regular maintenance can help prevent costly repairs and maintain the property’s value.
2. Stay Up-to-Date with Local Regulations: Stay informed about local regulations and comply with them to avoid fines and penalties.
3. Monitor Market Trends: Keep an eye on market trends to determine the best upgrades and renovations to make to increase the property’s value.

Conclusion

Renovating your property can provide a range of benefits, from increased property value and energy efficiency to enhanced appeal and easy to rent or sale. Whether you’re a homeowner, investor, or landlord, renovating your property can be a smart investment that pays off for years to come.

 

I hope you find this article informative!

 

Muhammad Jahengir Akram

Property Manager

Al Forsa Real Estate