Some people renovate to avoid moving, some renovate to get a better price. If you’re the latter, this article is for you.
Renovating for profit may seem like a simple matter of ensuring that the value created is more than the total you’ve spent throughout the process… This is entirely correct. However, it is much easier said than done. Not all renovations are equal. Spending too much renovating superfluous rooms, like powder rooms, can be a tipping point between profit, breaking even, or even losing money!
If you are renovating to add value to your home, ACM Constructions have a few tips to help you avoid costly renovations that fail to entice buyers.
Renovate Your Kitchen
It’s a cliche in renovation, however, a thoughtful and cost-efficient kitchen reno can improve the value of your home.
Capping your spending on things such as fixtures is the first step. It’s incredibly tempting to overspend on kitchen fixtures. Like a kid in a toy store, once you imagine yourself with high-end appliances and fixtures it can be nearly impossible to let your wallet do the talking! But, cost-effective fixtures in the kitchen can create a fresh look just as well as high-end options can, without breaking the budget. Similarly, countertops are a dark void for many people. Having a consistent approach is going to serve you well when it comes to budgeting, as well as aesthetically. An expensive stove will look out of place against DIY cupboards, making the whole room look mismatched.
Beautify the Bathrooms
Bathrooms and ensuites are a great way to improve value – another cliche. Buyers like to imagine themselves in the home. Imagining yourself in a luxurious bathroom is infinitely preferable to a dark and dingy water closet.
Similar to the kitchen, you will need to watch overspending on fixtures. Do you need a floating tub, or will a simple yet stylish one do the trick?
Speak to your builder or designer for recommendations on trustworthy subcontractors. Having quality work done right the first time will reduce the chance of having to pay for someone to fix mistakes or faults.
Unique Entertaining Areas
There has been a significant rise, in recent years, of buyers looking for homes with existing outdoor entertaining areas. Decks and outdoor areas are emotional drivers for buyers. It is very easy for buyers to imagine spending time enjoying a deck. This is something that renovators can capitalise on as it can be a very simple process to beautify an existing outdoor area. Refinishing decks or adding new shade cloth can often make an outdoor area look as good as new, if not better. However, bear in mind that this may not be ideal for homes without existing areas. Adding a new deck may require council approval and earthworks – opening you up to delays and extra costs.
Garages Get Buyers In
Garages, carports, and off-street parking have become a glowing beacon for many buyers looking to purchase inner-city ring properties. There are some council requirements surrounding garages, but in most instances, approval is not required. In these cases, a garage is a quick and cheap addition to your home that can add significant value.
Set Aside the Swimming Pool
While swimming pools are an added luxury in summer that many homeowners would enjoy, the presence of a pool does not tend to drive up price. In fact, some homeowners will often cite the cost of maintenance and care as a reason not to increase their offer.
Unless you are putting a pool in for your own personal enjoyment, it is best to think very carefully about the cost-benefit of such a large addition to the home.
Ultimately, there is no ‘Perfect Plan’ to ensure your renovation gamble pays off. However, being informed of industry norms is an excellent starting point. The most important thing with renovations for profit is ensuring you have a broad target audience in mind. The last thing that you want is buyers factoring their own reno budget into their offer.
If you are intrigued by the idea of house flipping, remember there is more than just renovation to consider. How your new property will be taxed is something that should be closely inspected as it could influence whether or not you come out on top after selling.
Speaking to a builder as well as local real estate agent is another great way to understand what buyers are looking for. These are professionals on ground-zero who are regularly interacting with buyers – capitalise on their knowledge!
ACM Constructions have broad experience with renovations of all sizes. If you are interested in talking to a professional building about your renovation options in a no-stress environment, then contact one of our friendly team today! We are available for no-obligation consultations as well as quotes.