There is no doubt that renovations can add value to a home, but if you are planning to sell soon, it is important to make sure that changes you invest in now will actually be of value to other people.
Before you begin to knock out that wall and add the gym-with-sauna you’ve been dreaming about, stop and ask yourself why; is it because you want it in your home long-term, or because you think it will appeal to cashed-up buyers when you put the house on the market next year?
If you’re settling into your home for the long run, additions like a wine cellar, customised spaces and lifestyle features could be a great way to enhance your living environment.
However if you’re looking to sell, you’ll want to focus on certain market-friendly aspects – consider it a way of broadening your horizons, rather than focusing on a niche. You don’t want to spend $200,000 renovating an $850,000 house, only to have it sell for $950,000.
If renovations are reaching the top of your to-do list, now is a good time to start thinking about which features deserve your attention and which are time and money wasters. Here are some of the best and worst home improvements.
Best:
– A good-looking exterior. Street appeal can make the difference between a buyer stopping by or moving on. With most homebuyers beginning their search online, good photographs have a major impact. The cost of new paint, a new garage door and a landscape gardener are minimal compared to their potential for return and a quick sell.
– Staging. People respond well to homes that are filled with luxurious amenities, even if they don’t come with the house. A sweet stereo system, big TV, coordinating furniture and artwork can increase the value a buyer places on a home. Staging companies charge around $10,000 for a $1 million home, but this service can often help boost the sale price by 10% to 20%.
– Outdoor living and entertaining. Kitchens and covered patios are highly sought-after features in Australian homes, and the cost of building or renovating a deck is often lower than that of any interior room.
– Countertops and cabinets. Kitchens, along with master bedrooms, are the most important rooms buyers consider, so updating the countertops and cabinets might be the most cost-effective way to spruce up a kitchen and improve the design of the space.
Worst:
– Customised Spaces. A massive wine cellar, an air-conditioned pet kennel or a sauna might help make your house perfect for you, but can be negatives when it comes time to sell. If potential buyers don’t have a dog or don’t care about wine, they might try to get you to bring down the asking price because of such expensive luxury features.
– Roofs. Building a new roof is expensive and inconvenient for the household. When it comes time to sell the house, very few potential buyers will care how old the roof is or (within reason) what it looks like. They just want to know that it doesn’t leak.
– ‘Out-of-sync’ with the neighbourhood. People have certain expectations of home quality but still have a cap on how much they’re willing to pay for a neighbourhood. It is important that your home is as good as the neighbouring houses, but going to. Far beyond them could result in a lower rate of return than you expect.
– Technology. Whatever high-tech you hardwire into your home, perhaps for security, a surround sound entertainment system, or specialised lighting, by the time you sell your home, it will possibly be so outdated that potential buyers won’t put too much value on it.
We hope you have enjoyed this article. It is our pleasure being your real estate agents in Brisbane.
If you would like any assistance or advice, please feel very welcome to get in touch with our Brisbane real estate agents, Brisbane property management team, or Brisbane buyers agents.
