The value of your home determines its selling price and the equity you have in it. While factors such as location and market demand can affect property values, there are also steps you can take to increase the value of your home.
From making repairs and upgrades to implementing smart home technology, there are a variety of strategies to consider. Whether you have a limited budget or are looking for expert guidance, options are available to boost the value of your home and make it more appealing to potential buyers.
What Are You Trying To Achieve?
Before you get started, you need to be clear about why you want to increase the value of your home. This could be to:
- Maximise your sale price when you decide to put your home on the market
- Get a higher bank valuation so you can access your equity which can be used for refinancing or other financial goals
Ways To Boost Your Home’s Value
Make Repairs And Updates
Repairs, renovating and remodelling are effective ways to increase a home’s value. But consider the cost of the work in relation to the potential increase in value it will bring; for example, a fresh paint job doesn’t cost much but can greatly improve the appearance of a home. That can result in a relatively large increase in value for not much money.
Make necessary repairs, such as on leaky faucets, broken windows or cracks in the walls. Consider replacing old flooring with new carpet, hardwood or tiles. Then consider updating the kitchen, bathrooms and other areas to make the home more attractive to potential buyers. Professional help, such as a contractor or interior designer, can assist in planning and executing the renovation project.
Golden tip: Research the market to find out which renovations are most likely to increase the value of your home in your area, as not all renovations will give a high return on investment. For example, swimming pools can be a fun addition to any home, but for potential buyers, the risks and maintenance worries that come with them may be a deterring factor.
Clean And Declutter
A clean and organised home can appear more spacious and well-maintained, making it more appealing. To prepare a home for sale, remove unnecessary items and organise the rest in a way that makes the space feel open and uncluttered.
A good way to start decluttering is to go room by room and remove items not used in the past six months. Consider renting a storage unit for items you still want to keep. Cleaning includes cleaning carpets, windows, and other surfaces. Finally, consider hiring professional cleaners for a deep clean before putting the home on the market. While it won’t add significant value, it can make the home more attractive and stand out from other properties on the market.
Improve Curb Appeal
Focusing on landscaping, maintaining the exterior, and enhancing the front entrance and outdoor spaces can create a welcoming atmosphere and make the home more attractive. Landscaping can include planting flowers, shrubs and trees to add colour and texture to the yard.
Exterior maintenance includes ensuring the siding is in good condition, pressure washing and repainting or staining it if necessary. Enhancing the front entrance includes painting the front door, replacing hardware, and adding outdoor lighting. Adding outdoor lighting can accentuate the home’s best features and make it more inviting.
Add Smart Home Technology
When it comes to smart home technology, many options are available to homeowners. Innovations such as smart thermostats, lighting control systems and security systems can provide convenience, security and energy savings. Energy-efficient features such as double-paned windows and Energy Star-rated appliances can also lower energy consumption and utility bills. Well-insulated attics can also improve energy efficiency.
Not only do these upgrades make the home more convenient, secure and energy-efficient, they also promote sustainability, which is becoming increasingly important to many buyers.
How Much Do Renovations Increase Home Value?
In the Australian housing market, the return on investment for renovations can vary depending on location and type of property. Renovations that improve functionality and energy efficiency typically have a higher return on investment. For example, making major structural changes like adding extra space or replacing windows and doors can increase the overall market value of the house. On the other hand, if you make cosmetic renovations or aesthetic improvements without making significant structural changes, then this will not necessarily lead to an increase in the home’s value.
A good rule of thumb is to spend within 2% of your home’s value to add significant value without over-capitalising. So, if you’re selling a home worth $500,000, spending $10,000 on rooms like your kitchen and bathroom could add significant value for money spent. If you’ve got a $1,000,000 dollar property, you could spend around $20,000 on improvements. If you spend too much on your renovations, you risk over-investing and not making a profit when you sell.
It’s recommended that you consult a local real estate agent or professional appraiser for a better understanding of the expected return on investment for specific renovation projects in your area.
I Want To Renovate My House. Where Do I Start?
Renovating a house can be a complex and time-consuming process, but it can also be a rewarding way to add value to your home and improve your quality of life. If you plan to renovate your house, here are some steps you can follow to get started:
Determine Your Target Market
Who are you trying to sell your home to? Are you targeting first-time home buyers, families or empty nesters? Your goals should be based on the needs and desires of your target market.
Make A List Of Renovations
Write down all of the renovations you plan to make, including any updates to appliances, flooring or fixtures. Estimate the cost of each item on your list.
Set A Budget
Renovations can be expensive, so it is important to set a budget and stick to it. Consider how much you will spend and how you will pay for the renovations. You may need to save up or take out a loan to finance the work.
Hire A Contractor
If you are planning major renovations, it is a good idea to hire a contractor to manage and complete the project. Look for contractors with good references and experience in the type of work you need to do. Be sure to get written estimates and contracts to protect yourself.
Obtain Necessary Permits
Depending on the scope of your renovations, you may need to obtain building permits from your local government. A contractor can help you with this process.
Prepare Your Home
Before renovating, protect your home and belongings. This may include covering floors and furniture or temporarily moving out while the work is being done.
Staging Your Home
When planning to sell your home, it’s essential to stage it to appeal to potential buyers. This includes decluttering, deep cleaning, making any necessary repairs, neutralising the decor, highlighting the best features of the home, using minimal furniture, ensuring good lighting and improving curb appeal. By taking these steps, you can make your home look its best and increase the chances of selling it quickly and at a good price.
What’s Your Next Step?
Improve your home’s value today! Whether you’re planning to sell or simply want to enhance your living space, increasing your home’s value can bring you satisfaction and financial benefits. If you’re unsure how to proceed, our team is here to offer support and guidance.
Don’t hesitate to reach out for a free consultation with one of our experts by calling us at 1300 889 743 or by filling in our free online assessment form.