If you’re listing your home on the market over the next few months, or simply looking to add value to an existing property, renovating can be an excellent way to create instant equity.
How can you ensure maximum value from a renovation? It’s a question many home owners and vendors ask. From a fresh coat of paint to a house extension, if a renovation is carried out accurately and with the right advice, it has the potential to create tens of thousands of dollars in the first year alone.
While it can be tempting to jump straight into a renovation, it’s essential to carefully plan and budget for any upgrades you are considering. The profit you make from a renovation is not solely determined by picking up the tools, but also by the decisions you make. Keep prospective buyers and tenants at the forefront of any renovation choices – ask yourself: what upgrades would most appeal to them? Generally, it’s best to avoid loud colours and patterns and stick to muted tones.
It’s also important to ensure you don’t overcapitalise on upgrades. Spending $30,000 on a kitchen renovation will not necessarily add $30,000 to your home’s overall value. For this reason, it is crucial to hire an independent property valuer before beginning a renovation. They will be aware of circumstantial factors, including the typical value threshold of other properties in your street, and can advise on how much value a renovation has the potential to add.
When renovating, it’s worth paying a little extra to secure the best tradesperson possible. While a cheaper tradesperson can be appealing, hiring someone who is quicker, efficient and more experienced will save you money in the long run. Your buyer’s agent can be an excellent source of knowledge about the best tradespeople in your area as they often have pre-existing relationships with these professionals and can recommend the best options.
For large renovations, hire a project manager to manage the process on your behalf. They will be able to save you time and ensure upgrades are completed to a high standard. Generally, they can also provide access to more affordable trade prices, resulting in significant savings.
If you are looking to sell your property and don’t have the budget for large-scale renovations, there are plenty of other cost-effective ways to improve your property’s appearance. Talk to your real estate agent about getting some modern furniture to enhance your property’s appeal with prospective buyers. An updated sofa, coffee table and dining set can transform living areas. For gardens and backyards, a new table setting can help buyers visualise how outdoor spaces can be used for entertaining.
If you own a swimming pool, make sure it is clean and has been maintained, as this can be a strong selling point for families, and consider dressing pool-side furniture with towels and cushions for open for inspections, to create an inviting atmosphere. Removing clutter and opening blinds and curtains are other great ways to enhance your property’s appeal and demonstrate an abundance of natural light.
Regardless of whether you are considering minor upgrades or large changes, renovating a property can make a significant difference to your home’s overall value, even in a flat market. To receive maximum return from renovations, always remember to consult the experts and stick to your budget.