Renovations should add value to your house

If you've made the decision to renovate your house with the intention of increasing its market value, it would be wise to consult a REIWA agent prior to initiating renovations.

REIWA agents are well versed in the general tastes and preferences of buyers in their local area so can advise what appeals to buyers and which features would add immediate value to your property.

Consider what adds genuine value

Every budget is limited so make certain that the money you spend will meet your requirements and add value.

Any improvements, changes or additions should not narrow the marketability of your home. What may be trendy now, might be outdated soon. Or what suits your immediate requirements may not prove valuable when you decide to sell.

If adding value is a prime consideration, then a suitable aim of renovation may be to add two dollars in value for every one dollar spent.

As far as major renovations go, kitchens and bathrooms are the areas of the home that usually offer the most potential for value increases.

Timing is important

Your REIWA agent may also suggest the renovations you have in mind would best be deferred.

Generally speaking, the best time to renovate is near the bottom of the property market cycle. Near the top of a property cycle, excess demand for services and products is likely to push prices higher, so timeliness becomes important.

If the renovation is largely a lifestyle decision with no thought to marketability, then you should be prepared that you may not recoup the expenditure in the short term.

Before you commence renovating, have formal plans and specifications drawn up. These kinds of formal processes can save you in the long run by keeping you on track and focused on your end goal.