5 Renovation Tips To Add Value To Your Home

Rohan Calder
December 15, 2017

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DIRECTOR, AUCTIONEER, LICENSED ESTATE AGENT

Whether you’re renovating to make a profit or just want improve your own lifestyle, adding value to your property is key in any home renovation.

It can be a challenging balance, with many buyers falling in the trap of spending more on renovations than they get back when it comes time to sell. Here’s what you need to know to maximise your investment and avoid overcapitalising on your home.

Renovation tip 1: Understand the local real estate market

Before you can work out how much to invest in your renovation, you first need to understand the market. Find out the median price in your suburb and focus on keeping your home’s value close to that figure to avoid limiting your pool of potential buyers – the more expensive your property becomes, the longer it might take to sell. A $1.2 million property in Wantirna would usually be on the market a lot longer than a property closer to the median price of $906,000.

Adding features that don’t fit with the neighbourhood is also a fast track to overcapitalisation. If swimming pools, home theatres and expensive fixtures aren’t common in your area, avoid spending money on them in your property.

If you’re not sure where to start, talk to a local real estate agent who can advise you on the market in your suburb, and what buyers are looking for. 

Renovation tip 2: Set a budget and know which renovations will add value

It can be easy for costs to blow out when you’re renovating, but be realistic about how much you can afford to spend. Set your budget when you first start planning and identify the renovations that will fit within that amount, narrowing your focus to the most important features.

Start with the areas that typically bring the greatest return when it comes time to sell.

These include:

  • Replacing the kitchen
  • Updating or adding extra bathrooms
  • Adding an outdoor entertaining area
  • Increasing street appeal by painting doors and fences, or tidying the garden

Similarly, steer clear of spending on areas that don’t get as much attention, like the laundry or the backyard.

Renovation tip 3: Know when to bring in the professionals

DIY renovations can save costs, but there are some things that should be left to professionals to save you spending more money in the long run. A poor DIY job can actually devalue your home, so invest carefully to get a high-quality result.

Renovation tip 4: Easy renovations that add value and impress buyers

Buyers want to picture themselves living in the property before they commit to purchasing it, so consider how you can make your house feel more like a home.

These smaller details have a big impact, without the hefty price tag:

  • Repainted interior and exterior
  • Floorboards
  • New carpet
  • Air-conditioning
  • Heated bathroom floors
  • Security systems
  • Skylights in dark rooms or hallways

Speak to your real estate agent for advice on small renovations that add value.

Renovation tip 5: Renovating for mass appeal

A home cinema or extravagant water feature might suit your style perfectly, but may not be the right fit for potential new owners. Avoid discouraging buyers by keeping decor and fixtures neutral and focussing on features that have broad appeal.

If you’re looking for advice on renovating your home, talk to our team today.

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