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Market analysis··2 min read

Value appreciation before sale: Which property renovations pay off

Targeted modernisations prior to launching sales can noticeably improve marketing success, whereas excessive luxury refurbishments rarely yield the hoped-for additional proceeds.

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Value appreciation before sale: Which property renovations pay off. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

Prior to the official sales launch and the initial viewings, many property owners face the question of which renovation works are genuinely necessary. Alexander Zorin, valuer and estate agent at HausHirsch, points out that by no means does every investment pay off upon disposal. He notes that the crucial factor is a targeted deployment of funds to positively influence prospective buyers' purchasing decisions and secure the actual selling price, rather than tying up budget in uneconomical full-scale refurbishments.

Technical infrastructure and energy performance

Digital connectivity has now become a standard checkpoint during viewings. An existing fibre-optic connection significantly enhances a property's appeal. Sellers should examine the infrastructure beforehand. If the fibre-optic network is already in the street or a connection is possible, laying it into the building immediately is not strictly necessary, provided that this information can be substantiated during initial discussions.

Energy performance has a direct impact on prospective buyers' financing capacity and on pricing. Zorin emphasises that modern heating systems improve the energy performance certificate, noting that the age of the system is more important than the specific technology; modern gas heating systems also remain accepted. Even presenting a sound modernisation concept without immediate implementation can positively influence sales prospects and price. While there are also buyers who deliberately take on detached houses with old heating systems as renovation projects, the achievable purchase price drops accordingly in such cases.

A need for technical upgrades exists primarily in electrical installations if they date from before 1990 and lack modern rocker switches. If copper wiring is already in place, it is usually only advisable to fit additional power sockets. For installations dating from the mid-1990s onwards, there is generally no need for action. The same applies to windows: double-glazed plastic windows do not require costly replacement if they are fully functional, as replacing them places a heavy burden on the renovation budget without yielding a proportional increase in proceeds.

Visual upgrades and proportionality

Unlike hidden building services, bathrooms and wall finishes immediately shape the first impression. A complete bathroom refurbishment is not necessary for this; new tiles in neutral grey or beige tones and white sanitaryware create a well-maintained atmosphere. This spares buyers upcoming work, accelerates the process, and minimises price negotiations, even if tradespeople's costs cannot be passed on to the price like for like. For the walls, a light, opaque coat of paint is usually sufficient instead of replacing wallpaper with costly fine plaster.

Visibly worn floor coverings such as old carpets noticeably detract from the overall impression of an otherwise well-kept property. For economical enhancement, Zorin points to durable wood-look vinyl flooring, available from around 15 EUR per square metre, which can be laid quickly thanks to integrated impact sound insulation and click systems, without the need to invest in expensive parquet.

The expert explicitly warns against excessive luxury. Costly materials often lead to unrealistic price expectations on the seller's side that the market does not reward. Valuation is always guided by comparable properties in the local area: a two-room flat with a market value of 200,000 EUR can rarely be raised to a level of 250,000 EUR, even with high-end fixtures.

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