Not all renovations are created equal!
Some changes to your home can add greater value to its resale price than the cost of the work, some may not affect the price much at all…. others may even be a barrier to potential buyers.
If the aim of your renovations it to make your home more liveable for your family, things like resale value may be less of a consideration.
However, we all want to keep an eye on the value of our home and ensure that what we spend on improving it won’t harm our personal finances.
So here’s our guide to the improvements most likely to add to your home’s potential resale price:
An Extra Bedroom … or Two
A three-bedroom house will fetch more than a two-bedroom house every time, right?
This does makes sense, but there are some things to keep in mind.
If you add an extra bedroom to the detriment of your living space, you may be reducing your ability to resell your home. The main consideration is how tight your living areas are, and if a reconfiguration will release space or steal space.
Another factor is making sure your home’s layout is in balance. If you have 4 bedrooms and just one bathroom, that might reduce the liveability – and desirability – of your home.
One of the reasons that additions and extensions are a popular choice when adding a bedroom is that they don’t eat into living areas that much if at all, even when incorporating a stairwell to a new storey.
Additions and extensions also give you more leeway to add that ensuite bathroom, study nook or TV room at the same time.
A New Kitchen
A new kitchen is probably the most popular renovation, but what about adding value?
That really depends on the answer to a few questions:
- What is the state and location of your current kitchen?
- How much are you planning to spend?
- When are you planning to sell?
If your current kitchen is looking tired and out of date, but well positioned, the improvement of a new kitchen will be relatively inexpensive and could add immediate resale value.
On the other hand, if your existing kitchen just isn’t to your liking, updating it may not radically improve the value of your home.
And spending big in those circumstances is betting your taste against that of potential buyers.
In many old homes, the kitchen is towards the back of the house, but poorly positioned, blocking access to the garden rather than allowing your home to flow.
In these circumstances, remodelling the rear of your home without considering an extension into the garden could be a missed opportunity to improve the layout, increase space and add other rooms and amenities.
So having an open mind and a bit of imagination could be a profitable decision.
A New Bathroom
Next in terms of value and potential comes the other favourite renovation, a new bathroom.
This is similar to the kitchen in terms of the questions of age, taste and position.
A new bathroom can be an opportunity, especially if relocating some of the plumbing, to look at how you might maximise your return:
- Is it possible to create a further ensuite bathroom at the same time?
- Can a better configuration lead to adding storage like walk in wardrobes that add greater value?
Bathrooms need a refresh every few years, but make sure that your consider whether cosmetic improvements and sensible maintenance would be more cost-effective than a brand new room. Some fresh grouting and a new shower screen can do wonders!
And if you are going for the complete replacement, think about the other things you could do at the same time to add value.
You know what they say about first impressions!
If you are renovating with resale in mind, making sure the presentation of your home stands out from the get-go is a smart move.
In terms of the front of your house, this can be as simple as a lick of paint, some tasteful landscaping and a refreshed driveway.
At the back, adding a deck that allows for outdoor entertaining is a cost-effective move.
Keeping the back garden simple but attractive is also smart. Some people will be judging that garden by how much work it will take to keep it looking good, whilst others might want to add their own greenthumb ideas.
What to Avoid
Apart from some of the cautions we’ve listed above, there are other things that may cost you much more than just their price.
Bold tiling, wallpaper, and paint that makes a statement might make your home stand out, but it also might put off potential buyers.
If you are looking to sell for the highest price, you’ll need to interest the widest possible number of potential buyers.
Keeping things simple and neutral can be the smarter move. Create more of a blank slate that others can project their ideas onto.
Swimming pools are one addition that we do specifically warn against in terms of adding value vs cost.
A pool will rarely add more value to your home than the cost of building one, and once again, this may reduce the number of your potential buyers.
Addbuild has been in the business of adding space and value to homes for over 35 years, so if you are looking seriously at home improvements and want specific advice on the improvements that are cost-effective and potentially profitable, please get in touch by calling our helpful team on (02) 8765 1555 or contact us using our online form.