How a Home Renovation Affects Property Price

When it’s time to sell your Australian home you’ll want to command a high asking price, of course. It’s true that most buyers will make offers a few thousand below the asking price. So the higher the asking the price, the greater the chance you’ll get what you feel your home is worth — provided you’re not pricing it too high  In order to increase asking price, many homeowners decide to make home improvements before putting their home on the market. But a renovation, whether major or minor, is no guarantee that you’ll be able to ask more money for your home. Knowing what to renovate is just as important as knowing how to renovate so that your home still appeals to a large number of buyers.

Renovations that Can Improve Property Price

Any area of your home that is worn should be improved before you list it on the market. When buyers look at a home they calculate how much more they’ll need to invest in order to get the house up to their standards. The less they have to invest after a purchase, the more they’re willing to spend initially. One of the most profitable areas to renovate is the kitchen. People are entertaining at home more often, and having a newly remodeled kitchen is a big draw for buyers. If the kitchen is small, consider opening it up and adding an island and new cabinetry. If your kitchen is already large but outdated, adding new cabinetry, flooring, window treatments, and counter tops can greatly improve your home’s assessment value.

Renovating the bathrooms may also increase your home’s value. Many people consider their bathroom as an escape, especially if there’s a nice sunken tub and an overall spa-at-home feeling. Depending on the condition of your bathroom, you may just need to add a new tub, fixture, and tiles. But if your bathroom has plumbing issues, you may need to gut the whole bathroom and do a complete renovation. One other area that can affect your property price is natural lighting. If your house has few windows, consider having some wall space knocked out and windows added in their place. This increases natural light and makes your home more appealing.

Renovations that May Cost You Money

When you decide on a renovation you want to make sure that you can at least break even on your investment when you sell your home. In some cases, you will actually earn or lose money on your renovations. Some renovations may cost more than what they’re actually worth to the value of your home. Focus on major renovations that affect most home buyers, such as the kitchen, bathrooms, and living room. Unless certain areas of your home are about to fall apart, you should be careful when renovating a garage, basement, or yard because you may not be able to recoup all of your investment from the sale of your home. By renovating what most buyers are interested in when looking for a home, you can often increase your asking price without losing money on a renovation. And, consider talking to a real estate agent to help you decide how to maximize your ability to achieve your asking price.


Richard Colum

Western Australia


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