How home upgrades can add value to your property

If you're looking to make some upgrades and improvements to your family home before you sell it, or are considering buying a property to 'flip' and resell for a profit, read this first.

We spoke to Ray Chua, buyer's agent and property acquisitions advisor at Momentum Wealth, about which upgrades add value to your home and which ones do not, so you can boost your property's value in the marketplace.

In general, how can upgrades increase the value of your property?

Certain home upgrades create that 'wow' factor and when that feeling is transferred to a prospective buyer, they make decisions based on these emotions.

By invoking positive emotions that appeal to buyers, the right home upgrades can result in them paying a premium. Purchasing a house is a highly emotional activity and when a buyer can imagine themselves living comfortably in your house and proudly having friends over, they may be more willing to pay a higher price.

Property valuers also assess the appeal of a house compared to others in the area and the same human emotions may influence a valuer's opinion as that of a home buyer.

Which upgrades won't add value to a property and why?

1. Rewiring
2. Ceiling repairs
3. Repairing moisture damaged items
4. Structural repairs - such as restumping or repairing termite damaged beams

Upgrading wires, ceilings and repairing household damage may not add value or 'wow' factor to your home, but they are certainly important to potential buyers who often expect these items to be in good working order before they make the investment.

If you're looking to 'flip' a house and turn it into a profitable renovation project, you should start by avoiding properties requiring such repair works. An experienced buyer's agent can guide you in these instances to the best renovation candidates, and also assist in negotiating the lowest price, whilst helping you to avoid costly mistakes.

What are the top budget-friendly upgrades that can add value to a property?

1. A fresh coat of paint - this would have to be the item that adds the most value for its cost. A fresh coat of paint can lift the mood of a room, covers any blemishes, updates the colour scheme, and is very forgiving - even painting amateurs can achieve a good outcome!

2. Street appeal - buyers often judge a book by its cover when it comes to choosing a home. Street appeal draws buyers to stop the car and view the house, rather than drive right on to the next house on the list. This can include:

• Removing the scruffy shrubs and trees to reveal more of the house can have a big impact, along with basic landscaping, such as adding mulch and easy-care plants to garden beds.
• Cleaning the entrance area by clearing the path, removing cobwebs and updating the entrance mat.
• Updating the front door or door handle, or painting the door a strong colour can give a great first impression before anyone even walks inside.
• Cleaning or re-spraying roof tiles, painting or rendering dated brick-face will also lift the street appeal.

3. Kitchen and bathroom fixtures - kitchen and bathroom renovations can add the most value, but they can be very costly. If you're on a budget, simply upgrading the kitchen and bathroom fixtures can leave a lasting impression on potential buyers.

Upgrades may include:

• Cupboard handles
• Tapware upgrades - a good looking kitchen tap or shower-head can suggest good plumbing
• New kitchen appliances - such as a stainless steel oven, stove or dishwasher
• Replacing the exhaust hood or light fittings

4. Home staging - while it's not technically an upgrade, staging your property for a home open can have a big impact on a buyer's first impressions. Hire or purchase some budget-friendly furniture and decorative pieces to fit out the property and update the décor.

If you're still unsure about what upgrades and renovations you should make, an experienced REIWA buyer's agent can give you guidance on what can help or hinder the value of your property in Perth.