How much do renovations increase your home’s value?
If you are all about buying a home, doing it up and flicking it off, then what you spend your money on during the renovations makes a big difference to the profit you make.
If you are looking for ways to increase house value, then renovating is the trick- a lick of half-spanish-white on the walls and a new kitchen bench to add a sneaky few thousand. But if you’re serious about getting a return on home improvements, there are some things you should do and some you definitely shouldn’t.
Does remodeling increase home value?
While there are a variety of factors that affect the value of your home, remodelling or renovating will add value to your home. However, some things will just cost you money and not give any return, so you need to ascertain which changes you need to make to your home. Get the best bang for your buck.
Things you should definitely do
The main thing to keep in mind is tailoring the renovation to suit the buyer and area. There’s no point dropping $50k on a kitchen in a small home, or a place where there’s no entertainment area. If it’s a family home, renovate with colours that hide the dirt. If you’re aiming for older couples, then a entertainer’s kitchen and dining room is a great selling point. But don’t try and sell a $1 million dollar home in an area where the homes are worth $400,000.
A coat of paint is a common way to add value- keep it neutral and light.
Start at the street and look at the house. Street appeal is important, and that all-important first impression people make will end up influencing the price you sell the property for. Have a big cleanup of the garden. Consider a new letterbox, a new from path, a coat of paint on the fence, painting the house exterior, or a fresh coat of paint on the front door. If you don’t want to paint the house, hiring a water blaster and removing all the cobwebs and moss/ dirt under the eaves makes a big difference for no real spend.
Kitchens are the heart of the home. Every family discussion, every snack, everything happens between the fridge and the table. As a result, they are important to get right- and kitchens are often fiddly, expensive tasks. Buyers would much prefer to have a beautiful kitchen than having to renovate it themselves. A kitchen reno typically adds $1.50 for every $1 spent.
Bathrooms are another fiddly, expensive install. They are prone to budget blowouts due to the potential for water damage, and buyers like the knowledge that the bathrooms are clean, new, and not leaking. The same as kitchens, they will add $1.50 on the purchase price for every $1 spent.
If you don’t have a garage, adding a carport adds value without the cost of a garage. It will cost half what a full garage does, but still provides the shelter from the car to the house that buyers want.
Finally, fix all those nagging, annoying problems you’ve been ignoring for years. Dripping taps, broken shelves or drawers, squeaky hinges… a round of DIY repairs won’t take long but it presents your home in a much better light.
Things that aren’t worth wasting your money on
Unless you’re planning on staying in the house yourself, these additions will not be worth it. They don’t add any value to the purchase price.
A pool seems like a good idea on the five hot days we have each year, but they can be expensive to install. The base cost is around $35,000. This is for an in-ground pool, made of fibre glass. If you are looking at a concrete pool, then prices begin at $55,000. To this, you have to add in costs related to heating, placing drain systems, covers as well as the creation of decks and some landscaping that you may want to bring in.
Speaking of landscaping, don’t bother installing an elaborate deck. They can cost a lot, especially if you choose a hardwood decking, and you won’t recoup your costs from your buyer. In fact, landscaping in general isn’t something that most buyers place value in.
The utilities and home maintenance isn’t considered to be a big drawcard either. Electrical upgrades, new plumbing, a new roof or HVAC—they’ll be good if you are staying in the home, but if you plan to leave, it’s not worth investing in.
High-end upgrades, unless the house is high end in a flash part of town, are simply not worth it. The enormous fridge, the designer wallpaper, the granite hand carved from the Himalayas- other people will not see the value in the same things you do.
Get the best return on home improvements
If you want to renovate to sell, then think like your buyer will. Plan your home for the target market and invest in areas they’ll appreciate. That way, you know you’re not wasting money that you won’t get back. If you’re unsure, the team at Sika Homes are renovation experts and can advise you which parts of the house are worth remodelling, and which aren’t.