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In today’s market, getting creative with how you approach property investment is more important than ever. Whether you’re a homeowner looking to sell or an investor trying to maximise your profits, pre-sale renovations are a really effective way to add value without breaking the bank.
Recently on the podcast we spoke with DevelopHer and Founder of Wealth House, Kirsten Jackson, who is a Sydney Pre-sale Renovation Specialist that helps homeowners boost their home’s value before they even hit the market. Today, we go a bit deeper to chat about how this strategy can help you get the most out of your property, and how combining smart, data-driven decisions with creative renovations can really pay off.
Why Pre-Sale Renovations Are a Smart Move
So, as the name suggests, pre-sale renovations are all about boosting your property’s appeal—and its price tag—before you sell. Instead of listing your home as-is and hoping for the best, you can make strategic improvements that will increase its value and make it more attractive to potential buyers. By addressing the areas that need the most attention, you can make your home shine without having to take on a full-scale renovation.
With a background in real estate in the U.S., Kristen saw firsthand how much of a difference pre-sale renovations could make. But when she moved to Australia, she noticed something missing. “When I got here, I realised no one was offering this kind of service,” she explains. That gap in the market got her thinking: what if homeowners could renovate their homes before selling and pay for it after the sale?
The “Renovate Now, Pay Later” Solution
One of the biggest hurdles when it comes to renovating a home before selling is, of course, money. Most people don’t have tens of thousands of dollars lying around to spend on upgrades. This is where Kristen’s “Renovate Now, Pay Later” model comes in. It’s a simple but brilliant idea: homeowners can have their property renovated before putting it on the market, and then pay for the renovations once the house sells.
“It’s all about removing barriers for homeowners,” Kristen explains. This model allows homeowners to take advantage of the potential profit from a higher sale price, without having to worry about financing the renovations upfront. “With $100,000, you wouldn’t be able to buy a million-dollar house. But with that same $100,000, you can make strategic improvements that add significant value to your existing property.”
This approach is especially beneficial for homeowners who want to increase their selling price but can’t afford the renovation costs upfront. It’s a win-win: homeowners get a bigger return, and buyers get a move-in-ready home that feels fresh and updated.
Doing Your Homework: Why Data Matters
While creativity plays a big role in making a home feel more inviting, data is just as important in deciding what renovations are worth the effort. You don’t want to invest in upgrades that won’t give you a good return. Instead, it’s so important to understand what the current market looks like and what buyers are willing to pay for.
Kristen makes sure she’s always working with the right data before diving into a project. “I make sure to have at least two comparable sales for every price I’m confident in,” she says. This helps her figure out what the house is worth now and what it could be worth after renovations. That way, the homeowner knows they’ll be able to sell the property for a price that makes the investment worthwhile.
In one of Kristen’s projects, the real estate agent initially suggested a selling price that seemed too high. After doing her own research, Kristen realised the property’s actual value was lower than the agent’s estimate. Thanks to her data-driven approach, they were able to price the property more accurately—and it sold within the expected range. “It’s always worth doing the homework upfront,” Kristen says.
Focus on Strategic, High-Impact Renovations
Not every home needs a complete makeover to sell for a great price. Sometimes, it’s about making a few strategic updates to the areas that will make the biggest impact. Kitchens, bathrooms, and curb appeal are often the areas that buyers focus on, and they’re also the spots where even small improvements can make a huge difference.
Kristen explains that it’s all about balancing what will make the house more attractive to buyers with what makes financial sense. “It’s about creating a space where people can imagine themselves living,” she says. In one project, she turned a study into a fifth bedroom, which made the home feel more spacious and functional, even though it didn’t require a huge renovation. That simple change helped increase the home’s overall appeal to buyers without blowing the budget.
Budgeting Smartly for Renovations
One of the keys to successful pre-sale renovations is setting a budget that works—and sticking to it. Kristen is a big believer in planning for the unexpected. “I always budget high because I’d rather come in under budget than have to dip into contingency funds,” she says. By planning for surprises, homeowners and investors can avoid the stress of going over budget, which could eat into their potential profits.
Kristen also suggests having a contingency fund—typically around 15% of the renovation budget—just in case anything unexpected comes up. This gives you the flexibility to handle any surprises that might arise during the renovation process without derailing the entire project.
Avoiding the Pitfall of Over-capitalising
While renovations can add value to a home, there’s always the risk of overcapitalising—spending more on upgrades than the market will support. This is why data is so important. By looking at similar properties in the area, you can figure out what’s worth investing in and what might not give you a good return.
Sometimes, you can add value with smaller, more creative updates rather than major overhauls. “Even small updates—like replacing countertops or updating light fixtures—can make a huge difference,” Kristen says. The key is to focus on the areas that matter most to buyers and make sure you’re not over-improving for the sake of it.
Tackling the Challenges: What Happens When Things Don’t Go as Planned?
It sounds too good to be true, right? As with any investment model, things don’t always go perfectly, and it’s just about being well-prepared for those moments.
For example, Kristen makes sure to protect her investments by including clauses in her service agreements to cover unexpected situations. Whether a client decides not to sell or the house doesn’t sell as expected, Kristen has a plan in place to ensure she’s covered. “I always have a cancellation fee and work out payment plans if needed,” she explains. This way, you can keep moving forward, even when there are bumps in the road.
So there you have it – an innovative approach to property investment that can have a BIG impact. By taking a data-driven, creative approach, you can turn any property into a more valuable, market-ready home. And, with the right strategy, you’ll not only increase your profits but also give buyers a home they’ll fall in love with (and that’s typically how you drive up that sale price you were hoping for)!
You can listen to the full podcast episode here or, if you’d like to learn more about Kristen, Wealth House and pre-sale renovations, head to https://wealthhouse.com.au.
Images are of Kirsten’s latest project – 88 Clareville Avenue Sandringham NSW.
