It’s a great idea to think about refreshing a property before selling it, however, sellers should tread carefully because while it may seem like a wonderful idea the outcome would depend on the targeted market.
You should not expect to spend money on a makeover before selling your property more so if you cannot guarantee you will be able to recover your expenses, especially if you are still not sure how much you will be willing to sell it for.
Will remodelling increase property value?
Yes, it typically does but take note that it depends on the remodelling itself. Other uncontrollable factors would also affect the value such as prevailing market conditions, competition, sales history, and buyer opinions- all of which are seemingly impossible to measure.
First and foremost, a seller’s mindset is that they should not be spending money for remodelling more than what they expect to make of it and not because you spent a lot of money to remodel does not mean that it can be recouped once it gets to the market.
Adding value to a home before planning to get it sold is a case-to-case basis, which largely depends on market forces and behaviours.
There’s also the misconception that a renovation will always increase the value of a home, but it does not and if it does, it could become too steep for buyers or become too overpriced from what it actually should be.
Home improvement ideas that add value
With careful planning and research, owners can improve their property’s value when done right.
Industry studies have shown that upgrading a garage door can provide the largest return on investment for a property sale. A cost versus value report listed a garage door upgrade topped the list for the highest ROI at 97%.
This was followed by curb appeal such as installing stone veneer paths or borders with an estimated 94% ROI for which the main reason is that it creates a powerful first impression on the overall appeal to the property.
Among the other areas of the home that can be considered big-ticket items are the bathroom and kitchen, as well as energy-saving or “green” home features or appliances.
If the house has any unfinished portions, make sure to have it done before getting it listed.
When possible, adding another bedroom can also be a wise decision. It does not have to be an extra structure or extension, rather it would be practical and cost-effective to replace an unused loft, divide a spacious room, office, or extra space inside the home.
For bathroom makeovers, it does not have to be expensive, simply focus on making it clean and functional. Keep bathroom renovations light and bright by using neutral colours to appeal to a larger market segment.
Also, open concept homes generate more market appeal, which can be good news to sellers because it can minimise spending for repairs because it requires lesser to no embellishments or accents and allows potential owners to imagine designing spaces for themselves rather than be challenged with multiple rooms and closed areas.
Spending a few dollars on new appliances to replace old or damaged ones can be a good investment as well, just make sure to not overspend by purchasing luxurious and expensive brands. Go for quality and reliability rather than brand recall and recognition lest you end up not recouping what you have invested in it.
Other cost-effective ideas are applying a fresh coat of paint on the walls, ensuring the rooms and spaces a bright and clean, repairing damaged cabinets, drawers and fixtures, replacing leaking taps, and taking good care of the floors.
Remember, the key to maximising the value of a property is not on how much money is spent, rather planning it carefully and ensuring that spending is appropriate to the essentials rather than glamour.