Home Renovations That Offer the Best Return on Investment for Resale

It doesn't matter if you're not planning on selling your property in the immediate future, it never hurts to think about future plans. When it comes time there are certain renovations and updates you can do to your house that will greatly contribute to your return on investment.  If you are thinking about doing renovations in order to get ready to sell, you need to keep in mind that not all renovations are created equal and have the same outcome.   

What are the different types of Renovation Projects?

There are different types of renovation projects that you can carry out and these can often be divided into four different categories: 

• Basic repairs 
• Street appeal 
• Value for money 
• Passion projects 

A basic renovation involves fixing up small things that generally need maintenance or replacement. Things such as fixing any plumbing issues, or windows that might have trouble closing. These are things that prospective buyers will look at usually involving the functioning of the house.

Renovating to improve street appeal means looking at things like landscaping and the condition of the outside of the house.  Street appeal is important because it creates those first impressions before prospective buyers even walk in the door.  The more visually appealing your home is, the more inclined people will be to want to see the inside. 

Renovations that provide the best value for money are always high on the list so that people can recoup some of the money that they have invested in the property. These are projects like bedrooms and kitchens. There are also exterior updates that will also help deliver more bang for the buck at resale such as 

• Roofing,
• Sliding doors, 
• Windows, 
• Refurbished decks, and 
• Energy upgrades such as solar panels 

There are also passion projects. These are projects undertaken by the property owner without too much consideration as to if they will be able to recoup the costs on resale but more out of the tastes and interests of the owner. This might be things like putting in a pool or spa.  They may be considered fun improvements but without having the same passion, a prospective buyer may not be willing to pay extra for them.

What Renovations Are Likely to Appeal to Buyers?

High on the list of renovations that produce the best return is the bathrooms and kitchen. An updated bathroom or kitchen is a major selling point. 

Giving a bathroom a fresh and updated look will quite often go a long way. Depending on the age of the bathroom you might not have to completely gut the room and redesign it from scratch. It may just need a freshen-up and some modernisation. 

Kitchens are always a popular choice to remodel and one of the best things you can do in a kitchen remodel is to increase storage space. Kitchen storage space is one of the first things people check out when looking at potential homes. Replacing a splashback can also be a good way to give new life to a kitchen. 

Being able to entertain outside is always appealing especially in North Queensland. Having an inviting outdoor entertaining area will most definitely add value to your property. You can make improvements to this area on any budget.

Maintaining things like your air conditioning, heating and ventilation system is also important. If they are run down and not working properly, potential buyers may not want to incur the cost of having to fix or replace these on top of purchasing the property. 

Keep in mind spending more doesn't always mean higher returns; often minor improvements can produce great results. Elaborate upgrades customised to your tastes may not appeal as much to potential clients so you may be better off focusing on decor-neutral upgrades that focus on improving the functionality of the home. 

What Renovations Don’t Seem To Have a Good Return On Investment?

We have talked about what renovations appeal to potential buyers and have a high return on investment, so let’s talk about those that may not be worth the time and money. 

Pools tend to rank rather low on the return on the investment ladder. Not only can they be very expensive to put in, and they can also be high maintenance and a lot of effort and expense to maintain. Prospective buyers may prefer to avoid taking on the long-term commitment and expense of a pool.

What are the common mistakes to avoid?

Don’t ignore local trends. Take the time to research and have a look at what is selling in the local area. What are the most valuable features of these properties? What design choices are being made? These are the things you can look at to help guide you. 

Another common mistake is spending too much when undertaking renovations. Whilst there are probably lots of things you may wish to do it does come down to budget and time. Pay attention to how much you are spending on each budget and ask yourself how much you are realistically going to get back.  Plan your moves carefully and think about the potential value added. We also have some Top Tips on how to get your house market ready. 

If you have recently undergone renovations and are thinking about selling your home you can talk to our team at NXT GEN Property.  We have over 35 years of experience and local knowledge to help you get the best return on investment for your property.