The value of home renovations
We’ve heard this tale too many times over the years: A home improvement undertaken in the belief it would increase the home’s price, a salesperson justifying the cost with an often misleading promise of gains.
Right now Brisbane home owners are busy doing and planning renovations, with many of our suburbs about to witness their biggest ‘face-lifts’ in decades. The floods have mandated the work for some while for others the cooler sales market has encouraged them to make improvements rather than trade-up. And while we love to see a home’s full potential realised can we offer these suggestions?
One dollar of renovation cost doesn’t usually add one dollar of value. In some cases it might add very little at all. One of our team last year carried out a $140,000 new bathrooms, new carpets, new lots of things reno and their home’s valuation rose less than $80,000. If you’re renovating to stay and enjoy the home yourself (or your insurer is paying) then go for it. If you’re doing it to increase the value of your home please be careful.
Choose appropriate items for your home and try some good value alternatives. Unless you’re in a high end market most home buyers don’t really care what brand your kitchen appliances are. Carpets, tapware and toilets can be similar – provided the quality is okay your end sale price will likely be very similar. Location and space are far more important than fittings.
We’ve all heard the dangers of overcapitalising. If your apartment building has a grotty entry with dead plants and cigarette butts you might be wise to join the committee and deal with that before you start putting in a new kitchen.
The dearer the home, the smaller the market when you go to sell. While we’d all love to buy a fully renovated home the hard reality of budgets means most of us can’t afford to. The real estate ads that have the biggest response? Unrenovated cheapies.
And the aluminum cladding? Most buyers just worry about what’s underneath that they can’t see. That door to door salesman was the only one to profit from it.
We’d love to hear your renovation stories.