09 Dec How much do renovations increase home value?
When thinking about presale renovations, every homeowner wants to know what renovations are going to bring them the most value. Every home is different and some homes only need a few upgrades here and there whilst others require a major facelift before they’re put on the market for sale.
Depending on a variety of factors, the renovation that will lift the value of your home the most will change from home to home. We run through the different types of renovations you can complete on your home and how they may help add value to your house before you put it on the market for sale.
Before we run into the different kinds of renovations that are possible, it’s important to understand and keep to your budget. Before jumping into any renovation project, it’s important to talk with experts in the field of pre-sale renovations so you have a clear understanding of what’s involved, how much to budget and what you can expect as a return on your investment.
We’re going to start with some of the easiest renovations you can perform on your property to give you the largest possible returns on your investment.
As the saying goes, ‘first impressions last’ and it’s no different for homes. When a potential customer pulls up to your property, they notice a lot about your home straight away. The quality of the street appeal is determined by many different factors. If the landscaping is off but the front door looks great, the home won’t come together as well as it could.
Everything needs to be working with the other elements of your home to give it the best chance of being sold at the highest price. Below are some of the things you can do to help bring your street appeal in line with the price you’re asking for.
- Have a well designed walkway installed
- Fix driveway issues (cracks or stains)
- Replace old fittings with new ones
- Dress up the front door (paint, plants, numbers)
- Symmetry is key (arrange your compositions of flowers, plants, etc so they’re even)
- Add seating to your front porch or patio (comfortable, inviting furniture is key)
- Get your gardens into shape by pruning, pulling weeds and planting flowers
- Replace old guttering and downpipes
- Add an arbour, archway, screen or fence panels
- Add outdoor elements like birdbaths, sculptures or water features
- Paint sidings and trims
- Add edging to garden beds
- Replace old, tired light fixtures with newer, more modern lights
- Change the front door
- Clean up (remove dead plants, cobwebs, gutter gunk and clean windows, etc)
Depending on what you do to the outside of your home, you could add anywhere between $1,000 – $10,000 in value to your home by simply thinking and acting on improving your home’s street appeal.
Technology and gadgets
Whilst it’s important to not overspend in this area, some tech and gadgets can really add appeal to your home, particularly if you have a younger target audience. There are some areas you won’t want to spend big dollars on and that’s what we call ‘hidden features’.
These are things like high tech wiring for smart home functionality, ceiling insulation and fancy ducted air conditioning systems. Some of the things you can add to your home to help increase its value are:-
- In-ceiling speaker systems
- Remote controlled garage doors
- Video doorbells
- Security cameras
- Smart shades
- Smoke detectors
- Smart sprinkler systems
- Solar panels
Obviously you need to consider the cost benefit of adding these types of features to your home and some items require considerable investment and may only break even on their return so it’s important to take into account your home’s age, the neighbourhood your home is located in and the types of people are likely to purchase your home (a professional couple will have different wants and likes when compared to a young family).
It’s estimated that adding tech functionality to your home can add anywhere between a few hundred dollars worth of value into the thousands.
If the flooring in your home is old, tired, outdated and looks a little worse for wear, having it replaced – or in the case of floorboards, having them repolished, can add an additional wow factor to your home that also increases the value.
Depending on the type of home, polished hardwood flooring or tiles will always add more value than simply replacing the carpet. Some people are also very adverse to carpets (particularly if they have allergies or pets) so it could be a case that you install new carpets and the first thing the new owners do when they move in is rip up all the carpeting.
Whilst it’s difficult to give you an indication of just how much you can expect as a return on an investment of new flooring, we can tell you which types of flooring will have the most impact and will likely give you the highest return. These are listed in order below:-
- Solid hardwood flooring
- Engineered timber flooring
- Tiled flooring
- Laminate flooring
A new coat of paint on the outside of your home is one of the fastest ways to improve the look and feel of your house. Cracked, old and peeling paint will detract from the overall appearance of your home so getting a new coat of paint on your house before you sell is a great way to increase the value.
It’s usually recommended that you stick with neutral colours as even though your favourite colour might be purple or red, potential buyers will likely be put off by bold, colourful palettes.
Obviously you need to weigh up the condition of your home, the area your house is located and what’s actually going to be painted on your home (a brick home’s eaves and gutters will be much cheaper to paint than a weatherboard home for example).
By our estimates, the right type of paint job that complements your home and gives it a fresh, new look can add thousands of dollars of value to your home before sale.
Bathrooms are another area that potential buyers will inspect closely to see if it matches not only their lifestyles but their expectations. Cracked tiles, dodgy shower doors or vanities that are swollen and falling apart will all detract from the customer wanting to spend more time or imagining themselves living in your home, which is an important conduit to them putting an offer on your home.
Below are some of the things you can think about when it comes to bathroom renovations:-
- Replace old tiles
- Replace taps and showerheads
- Replace cupboard handles
- Replace shower screens
- Install a new toilet
- Update or replace the vanity
- Add storage and/or new towel racks
- Replace floor tiles
- Add or improve natural light
- Improve lighting
Having your bathroom completely remodelled is always an option or you can choose to have different elements of your bathroom renovated (like floor tiling or shower screens for example).
The cost of a bathroom refurbishment can range from a few thousand dollars right up to tens of thousands of dollars depending on what needs to be done, however we’ve had success with several clients we’ve remodelled or renovated bathrooms for acquiring well above their asking price when it comes time to sell.
Far and above the kitchen is one of the most popular home improvement renovations we get enquiries about. The heart of the home, the kitchen is a place where we share meals, memories and prepare everything from a quick snack for study through to Christmas lunch for you and the family.
Generally kitchen renovations are seriously looked into because the current kitchen is old, out-of-date, not functional or doesn’t match the rest of the house. A kitchen renovation needs to be both functional and beautiful. Remember a kitchen is a place where work happens preparing meals but can also be a place of charm and style where you can let your own personal style shine through.
Below are just a few ideas for when considering renovating your kitchen:-
- Be aware of space
- Sharp corners are not your friend in a kitchen
- Think about cabinet doors opening into each other
- Consider adding an island
- Place things at the right height (microwaves, overhead exhaust fans, etc)
- Consider your countertops (if you love to cook you will want more space compared to those that prepare quick, easy meals)
- Think about smart storage options
- Lighting can help make a kitchen more functional
All up a new kitchen renovation can add considerable value to your home. Many people will see the enhanced functionality and up-to-date look and feel as a boon when it comes to imagining themselves living in your home and preparing meals for themselves and their families.
As you can see, there are many different ways to add value to your home before you sell and they range in price from a few hundred or a few thousand dollars right up to tens and even hundreds of thousands. Depending on your area, the type of home you have and what the market is doing will determine just how much value your renovations will add to your home.
If you would like further information about presale renovations please feel free to contact us at any stage on 0481 536 900.