Renovation is a great way to improve property value and a valuation before and/or after is an excellent way to confirm any change in capital value. A professional valuation looks at actual value including access and analysis of past data and avoids any emotional attachment that could influence your perspective. You, your bank, your insurer and your real estate agent all have a vested interest in valuation outcomes. With a professional valuer, you’ll get a fresh set of eyes with no vested interest.
What to do first?
Knowing which items to tackle is also important before embarking on any major updates. Some renovations will be small and relatively inexpensive, whilst others will be larger and take more time. If you are renovating to sell, making a pre-sale list of options will help you determine where to begin and a little research into your local housing market combined with an up-to-date valuation will assist with working out what to prioritise.
Repairs are an important part of your renovation. Most homes do become damaged over time due to regular wear and tear. These are the items that need immediate attention.
Smaller tasks like painting will be noticed by prospective buyers. In fact, skipping over them will likely reduce the impact of major changes. Repairs that are functional and aesthetically appealing will add value to your property.
Partial renovations are not great
When a home has a partial renovation all this does is highlight and magnify problems in other areas showing there is ‘more money to be spent’. Sometimes, not renovating at all would be preferable to a partial renovation.
For example, adding a fancy art deco vanity unit or fancy full glass topped vanity unit to a bathroom but leaving the original shower over bath and doing nothing else. If you’re going to do a kitchen or bathroom go the full renovation not a partial because partial renovations stand out. Seamless style across the home or a similar themes throughout home is better.
Giving your home a facelift is good for adding value e.g. painting kitchen cupboards is often better than putting in a new tap and sink. Feature walls are an item that falls into the ‘trend’ category.
Kitchen and bathrooms
We spend a lot of time in the kitchen and bathroom. Updates to these areas can definitely improve value. Items that are outdated or that are no longer working should be replaced.
The rule of thumb used to be spend 10% of the value of the home on kitchen renovation but there are more variables these days and cheaper options that are still going to add good value.
You don’t necessarily need to choose the most expensive fixtures and appliances on the market for your bathroom makeover. Luxury fittings will look nice, but won’t necessarily make a huge difference to your return on investment. Consider instead the function of the bathroom. Choice has a great article on bathroom renovations that warns against DIY and going for ‘trendy’ styles that will date and lose appeal fast.
Granite bench tops do improve homes but is now so used that you perhaps wouldn’t go for laminate benches anymore when granite reconstituted stone is similar cost. You could say that granite is now generally standard in Brisbane new homes as almost all builders are now using this or stone.
In most cases home extensions cost more than the value that they add, therefore be savvy of you’re doing an extension to sell. Sometimes it will make it easier to sell but might not add the total cost of the renovation.
Extending living areas can be good. When considering an extension look at the value gained from a lifestyle point of view. For example going from a four bedroom home to a six bedroom vs. extending a two bedroom to a four bedroom home. The average person would benefit from the four bedrooms vs two bedrooms bit but wouldn’t necessarily need extra bedrooms in the first example. Where your home is located and the demographics of the area could influence this.
This comes down to lifestyle choice. Pools do add value but it’s a classic of not adding what they cost to build. Spend on pools as lifestyle choice to avoid over capitalising.
Newer homes are often given a higher value but that doesn’t mean all older homes automatically lose value over time. In fact many older homes with architectural features or historical relevance gain value over time.
Street appeal is a factor
An attractive façade will encourage potential buyers to look inside which makes street appeal important. First impressions set the tone for the rest of your home. This increases marketing appeal and can go a long way toward raising the value of a home. A fresh coat of paint, repaired fence or new decking will pique buyers’ curiosity and make them want to look inside.
Good street presentation. Screen or vegetation is good for privacy but can be a security risk.
Location & amenities
The location of your property will also affect its value. Homes located in the city will be valued differently than those in rural areas or in the suburbs. Other factors include views and proximity to schools, shopping centres and public transportation. These are all important indicators of property value.
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Find out what your home is really worth. Let our experts provide a Brisbane property valuation so you can get the most out of selling your home. If you would like to know more about property valuation, contact us today to request a quote. Call or email us with your questions and to set up an appointment.