Unfortunately for homeowners, simply spending money doesn’t increase the value of your home. Throughout New Zealand people attempt to increase the value of their property. Property owners are spending hundreds of millions of dollars on home improvements that don’t add resale value to their homes. So if there is so much wasted time and money, you should ensure you focus on the home improvements that actually give you a return on your investment, and not the renovations that offer limited returns.
Sticking to the improvements that buying value will see you add significant value to your home. Here are the renovations that will increase your home’s resale value:
Upgrading or renovating kitchens and bathrooms can significantly increase the value of a property. New appliances and fixtures are a simple way of creating a good impression when potential buyers are inspecting the home. It creates an impression of a house that is well maintained, adding an overall sense of comfort to the whole property.
Potential buyers are often reluctant to purchase a property they’ll have to perform repairs or maintenance jobs on. Improving the property can be as simple as replacing fittings and fixtures, repainting or tidying the garden. Minimum maintenance and neutral colours are the best way to appeal to the widest range of people. Both investors and first home buyers will be enticed by a property that is ‘ready to go’.
Converting an unused garage or loft into extra space opens your home to more buyers as larger families may include your home in their buying options. You don’t only have to add bedrooms; an extra bathroom will provide a significant return.
Not all improvements are created equal. Here are the renovations you should avoid:
While some improvements will increase your resale value, they are prone to suffering diminishing returns. Marginal improvements are worthwhile, but overbuilding in a neighbourhood rarely works out. Generally, buyers don’t want to pay $500,000 for a house in a neighbourhood that has average sale prices of $350,000. They would rather spend the $500,000 in a $500,000 neighbourhood.
Buyers expect a minimum landscaping standard, but an elaborate garden doesn’t add value. Most buyers, while appreciating its beauty, focus on the reality of the timely or costly upkeep.
This waste of money is similar to being the best house on the block. High-end upgrades generally increase the resale value of high-end homes, but they can look out of place and are under-appreciated in homes that have mostly standard features.
These have been a few introductions to increasing your resale value. Our experienced sales agents and property managers can find many affordable ways to boost your property’s value. You can also view this week’s homes here or call us on 09 555 9100. We have three offices in Manukau, Pakuranga and Botany to cover all your real estate needs.