If you want to sell your home for the best price, you might need to make a few changes that will improve its property value. Those that, when typed in an instant valuation platform, will increase its worth significantly.
The number of bedrooms, for example, can make a huge difference. The same is true with the size of the property and certain interior features.
Did you know that a fresh coat of paint can increase a property’s value by over 2%? Imagine how much you’ll gain with an extra bathroom or an extension? More on this later.
So you might want to call your most trusted carpenter or construction company before you have your home listed. You have to spend more if you want to gain more. If you do it right, the profit you make could be more than the renovation cost.
But here’s the problem. Not all renovations pay off.
This means you need to be a little more discerning as to the kind of work you should have carried out. You should also avoid making the mistake of overcapitalising, where the cost of renovation far exceeds the real value of your asset.
Why? Because it runs the risk of costing more than the resale value.
Say you spent $100,000 on home renovations, but the property value has only increased by $75,000. $25,000 is a huge loss.
Suffice to say that renovating to improve property valuation calls for finding a balance between doing the right thing and setting the right budget. And balance is achieved by understanding how much value is added by specific home improvements.
Home Improvements and Value Added
- Off-Street Parking at 2.2%
Recent studies showed that a huge number of people are always worried about where to park their car when they go home, which explains why properties with off-street parking are sought after.
The feature is also popular among families with older children. So if your target market falls under the same category, adding off-street parking will definitely work in your favour.
- Redecorating/Repainting at 2.6%
Considering that adding a fresh coat of paint is the least expensive of renovation projects, it almost seems unfair that the value it adds to your property is higher than that of off-street parking. Then again, you would not want to complain about such good fortune. It is true what they say, a lick of paint is all it takes to improve a home’s appearance and, of course, add more value.
- Bathroom Upgrade at 2.8%
Bathrooms can make or break that sale you’ve been dying to close, which is why an upgrade is a must before selling a property. People can be easily put off with a bathroom that needs fixing or lacks new features.
How much updating you need to do, however, will depend on your target market. First home buyers are often content with bathrooms that have a bath with shower and single vanity, especially if the room is light and bright.
High-end market, on the other hand, would expect more bells and whistles, such as spa baths and double vanities.
- New Kitchen at 4.5%
Although kitchens are where prospective homeowners want to leave their mark the most, it can be a deciding factor if you keep it neutral and stylish. Rather than spend on refitting a kitchen, most buyers would prefer to make small changes instead. So a new, neutral kitchen will give them just that.
It doesn’t hurt that you get nearly 5% returns for your effort either.
- Extra Bathroom at 5%
An extra bathroom has become a selling point these days, with ensuites being highly in demand. So if you have extra space, consider converting it into a bathroom. Just make sure you don’t overspend in its construction.