Sellers Struggle to Maximise Sale Price Amidst Tradie Shortages
As Australia’s tradespeople struggle to keep up with demand for work, supply shortages are driving yet another challenge for the country’s real estate market. Conditions are comprising property values, making it difficult for property sellers to obtain adequate return.
Completing pre-sale renovations is becoming more challenging by the week. Increasingly, would-be renovators are unable to make the changes to give their properties the best chance of success. Real estate sellers fear an upcoming market freefall.
In an ordinary market environment, kitchen and bathroom makeovers would provide a high return on renovation investment for sellers. But for many, obtaining these services seems close to impossible.
“Demand for kitchen and bathroom renovations is high, but our clients are struggling to find not only the materials but the trades teams that they need,” says Sydney plumber Joe Rantino.
“Bathroom and kitchen renovations are complex, as you don’t just need a carpenter. You need an electrician and plumber available in Sydney and all the materials needed to make it happen. Kitchen benchtops alone are up to nine months’ wait.”
Meanwhile, other high-return renovations, such as painting and landscaping, are also affected.
“After almost a century in business, we’ve seen market fluctuations like this before, but this combination of supplies and worker shortages is unprecedented in my time running the company,” says Stephen Cochrane, owner of one of Australia's longest-running painting companies.
In such a challenging environment, Mr Cochrane suggests that painting may be the most attainable option for struggling sellers.
“We’re experiencing high demand for residential painting jobs, and luckily, our supply chain is still pretty secure. While meeting demand has been more difficult, painting is still the best bet for sellers to get good return on renovation investment.”
While the trade market and supply chain remain volatile, experts believe that all hope is not yet lost for property owners hoping to earn big on property sales.
Increasingly, real estate professionals are working to maximise sale prices and protect market conditions. It is hoped that clever renovation choices will help sellers succeed.
This approach is underpinned by a responsive mindset, with many agents recommending simple changes, including painting finishes, to help homes look their best for prospective buyers.
By thinking wisely about home renovations, experts say that sellers can still achieve great return on investment.
Until the tradespeople and supply shortage is resolved, availability driven improvements might be the only choice for sellers wanting to earn.
