Add Value to your Property | ROADTRIP TO RENOVATIONS
Updated: Jun 20, 2020
Step 4 - Add the Finishing Touches // part 2
Beauty comes from within, right? You may have spruced up your home and given the exterior a major makeover, but a pretty facade is worth nothing if the inside is ugly. Renovations can do wonders for a home's value – when done right.
TV Shows that turn dilapidated homes into DIY Pinterest-worthy mansions, give off the impression that renovations are an easy breezy process. Before you set off to rearrange furniture, redecorate rooms, tear out walls and paint the entire house, do your research & set a budget. You don’t want to go overboard, but you do need to spend the right amount to gain the right results
Two rules to go by: Strive for a $2 return for every dollar spent. Pay no more than 2% of the property value when renovating big ticket rooms such as kitchens or bathrooms.
There are many fantastic cheap options to show off your home’s potential, making it look accommodating and new, without having to go through every nook and cranny. Remember, you want to beef up your property’s value & maximise your return, without shelling out a ludicrous amount of cash.
Before we get carried away with the nitty gritty details, let’s go over some basic road rules.
RULE #1: Add Value Where It’s Visible
You make more than you spend on the things that catch and hold attention (paint, kitchen, bathroom, etc.). You spend more money than you make on things that aren’t obvious to the eye.
RULE #2: Make It For Your Market
A simple formula to increase the value of your property: the more people it appeals to, the more buyers will be interested in your property. The more your property is in demand, the higher the price you can ask for. If no one is interested, there is no competition to drive the price up.
The type of property you own and where it is located, define your market.
Different areas attract different people, who all have different preferences. Someone buying a one bedroom apartment in an inner-city suburb wants something else than a young family in the outer suburbs. Give buyers what they want and they will see value in your price.
RULE #3: Neutral Appeals To All
You want your property to live up to the aesthetics of a wide range of people. Neutral colours are your best bet. You want your potential buyers to imagine themselves living in your property, so avoid anything that could put them off.
The overall look and feel of the house must appeal to the buyer's emotions. If a home is cozy and well put together, a buyer is more likely to picture themselves in your four walls.
RULE #4: Be Realistic About The Value
A new doorknob & a fresh coat of paint won’t automatically add $50,000 to your property’s value. However, appealing to the widest market possible by bringing your home to the highest standard and making it look immaculate, will attract more interest, potentially driving up the price.
RUL #5: Your Taste Doesn’t Matter
Save your personal style, as well as short-lived trends, for your future home. Renovate your property with the market’s taste in mind, keep it simple & functional. The buyer will redo it anyways.
Now that we've recapped the basic rules, we can hit the road to renovations.
Next week, our first stop will take us straight to the heart of a home. You guessed it - the kitchen.