Generating buyer interest with a uniquely renovated property is the key to any renovation. There’s a lot to consider when deciding whether or not to renovate your first home; from how much you can afford to spend, to how much you should spend – and where.
Renovations, no matter the size of the project, have a tangible and in-tangible risk when trying to achieve top dollar for your property. When deciding on what home improvements to make, analyse who are the dominant real estate buyers in your area and what you can do to attract them.
- Young families like extra bedrooms / bathrooms.
- Adding extra storage areas can attract retirees or business owners.
- Opening up a living area can attract young couples or people that love entertaining.
It’s unwise to undertake renovations without doing your research!
Ask yourself what your buyer demographic would deem valuable – what a Caulfield buyer is influenced by may be very different from the needs of a person looking to buy in the Coburg area. Another important aspect to consider is that there is a huge market for buyers who are looking to renovate or make cosmetic changes themselves that suit their lifestyle and needs. Sometimes what seems horrible to the vendor is actually an attractive opportunity to the buyer.
When making any improvement, it is most important that costs do not surpass the value that’s added to the property. Significant renovations are not advisable on homes that have been adequately looked after and are inline with your demographics expectations of size and style.
Exterior – First Impressions Matter
Never forget that you only have one opportunity to make a first impression with buyers. So make sure your property is in peak condition starting with the exterior. Poor presentation can mean your home achieves a lower value due to less competition amongst buyers.
At minimum, make sure your gardens and lawns are tidy and green looking, with a fresh coat of exterior paint anywhere possible.
Careful Not to Over Capitalise: When working out your budget sprucing up your homes exterior, location is an important factor to consider. As a general rule of thumb, properties in the entry-level end of the market are less likely to return costs associated with anything above basic improvements whilst properties in more prestigious markets offer better returns on external renovations and therefore can be invested more heavily in.
New paint, new blinds, new lights, new flooring, new shower screen and vanity … you can give a home a complete facelift with a well-planned low-cost touch up.
Some Wise Advice:
- Be conservative with your numbers,
- Never inflate what you think you’re going to make.
- Make sure you’ve done your research and know what properties in the areas you’re targeting are really worth