People should resist the temptation to spend a lot of money on sprucing up their home to secure a buyer – those days are over, writes Isabel Morton

IN THE days when the Irish property market was rising, home owners could pour money into their property in the sure knowledge that they would recoup their investment in full, and indeed gain a healthy profit when they sold.

They felt justified in indulging their every whim with expensive designer kitchens and bathrooms, landscaped gardens and gargantuan extensions.

They reassured themselves that their home improvements were not just lifestyle statements but also sound financial investments.

Indeed sales prices achieved at the time proved them to be correct. And when they did sell, the next owners invariably started the renovation and redecoration process all over again.

It became a familiar sight to see skips filled with new designer kitchens, which were being discarded for no other reason than that they weren’t to the new owner’s taste.

These extravagances were justified by the rapidly spiralling increase in property prices. The truth was that the market was lifting the prices, not the quality of the fit-out, and now that we’re in a downturn, expensive extras are unlikely to clinch a sale.

Would-be vendors need to be realistic about the likely return they will achieve on their renovation investment. There is a very real danger that some homeowners will overcapitalise their home in a desperate attempt to secure a buyer.

Most estate agents no longer advise their clients to spend large sums of money on projects such as new kitchens, bathrooms or attic conversions as they are unlikely to recoup their costs.

According to Lisney’s Charles Broadhead, the days when people did up a property from top to bottom and ‘staged’ it to sell are over.

“We are now advising clients to make the property look as good as possible without spending large amounts of money. Clean up, touch up paintwork where necessary, de-clutter and add a few flowers. We’re back to basics.”

Clodagh Murphy of Gunne Residential, Ballsbridge, agrees and also warns clients to attend to important paperwork: “As soon as you put your property on the market your contract needs to be ready and waiting in your solicitor’s office. A delay of even of a few days could lose a sale. In addition, all properties being let or sold from this January will require a Building Energy Rating certificate.”

Felicity Fox, of Felicity Fox estate agents, advises vendors to make sure that their home is clean, tidy, warm and bright. “Kitchens and bathrooms in particular, need to be sanitised and squeaky clean. Don’t do anything like adding a conservatory or a new bathroom if everything else isn’t pristine, as it’s a waste of time. Many new additions and changes can stand out like a sore thumb and can make everything else in the house look tired. You’d be better off not painting one room unless you are going to paint the lot.”

Developers and some private investors who bought at the peak of the market and then capitalised further in costly renovations will undoubtedly suffer financially if forced to sell.

One such property, is a three-bedroom semi-detached house on Lansdowne Park, Ballsbridge. Measuring 106sq m (1,140sq ft), this is a prime example of a high-spec renovation, which is having difficulty attracting a buyer. It is now on the market with Gunne at €1 million, having been reduced by €300,000 since it was first launched in mid 2008.

No expense has been spared on the conservatory extension, high gloss cream kitchen with Neff and Fisher Paykel stainless steel appliances and granite countertops, in addition to the underfloor heating and the Philippe Starke bathroom sanitary wear.

Janet Carroll of Savills’ Blackrock branch explains that, up to spring 2006, estate agents would value a property and by the time it had been launched on the market, the value would have already increased by 10 per cent or more.

Sale prices were so strong at the time that vendors were confident they would recoup any extra money they had invested in renovation costs.

“At the moment you would typically do a valuation on every property, every week,” Carroll says, which often results in Savills recommending a price reduction.

Eamonn and Anne O’Leary have taken Savills’ advice and reduced the price of their four-bedroom house in Stillorgan Heath, a few minutes walk from the Luas station in Sandyford, Co Dublin.

“A few years ago the average price for a four-bedroom house in Stillorgan Heath was €1.1 million. We launched our home on the market last summer for €850,000, then reduced it to €750,000 and now it is €695,000,” says Anne.

“When Stillorgan Heath was first launched it sold out very quickly but luckily one of the sales fell through and we bought in 1998. We have a good-sized rear garden which is south-facing and not overlooked.”

The house has been greatly enhanced by a spacious bright extension, which provides a sitting area, dining area and smart kitchen fitted with high gloss units and walnut countertops.

And, as it is not long since the O’Learys extended and redecorated Stillorgan Heath, a fresh coat of paint was all that was required prior to launching their home on the market.

Now they are on the move, but Anne is philosophical about both selling and buying in the current market.

“We may be selling our home at a greatly reduced price but our next home will also be reduced, so it will balance out.”

Prepare your home for a sale

• Listen to your estate agent's advice and act on it.
• Make sure that your 'asking price' is correct. Review it with your agent regularly.
• Have your contract and all other necessary paperwork completed.
• Clear, clean and de-clutter.
• Remove stained and unattractive carpets, curtains, furniture and anything else, which might distract viewers.
• If the décor is suspect, keep it simple, stark, crisp and clean. A couple of coats of white paint will neutralise all.
• Show bedrooms with beds in situ (ideally a double bed), as viewers can't always imagine that the room will have sufficient space. Dress with crisp white bedlinen.
• Keep heat on and fires lit.
• Make sure every room is brightly lit. Table lamps are more attractive than central pendant light. Never display naked bulbs.
• Be realistic, practical and patient and remember that we're all in the same boat, so we all have to keep rowing!