While the answer should be “yes” to the question of: will renovating add value to a property?, there are still a few things that one has to consider before forking out a substantial amount of money to renovate their house and hopefully sell it at a larger profit.
Tackle pressing matters first
Before deciding how to improve on the functionality or aesthetics of the house you are working on, it is prudent to first prioritize any repairs that need to be done such as roofing, termite infestation - your best investment is to make sure that everything is in working order. Your new bathroom will not sway any buyers if you have a crumbling foundation. Furthermore, it would be much more expensive if you realize you need to replace certain walls after you have finished your new renovations. Therefore, assess the existing damages and make sure that you have not left anything out prior to moving on to the next step.
Kitchen, Bathroom, Interior and Exterior
It is in that order that generate the highest return on investments. According to the NBC, “the amount invested in a kitchen should never exceed 15% of the total property value” and similarly, “the maximum cost of a bathroom renovation is estimated at 5%”. With these in mind, you will be able to better budget your renovations.
Are the modifications approved?
If the design is dramatically altered from its original concept, you might find that property valuers will not take into account the extra deck you have installed, the pool you have added in - you might even find that you have to spend extra money on restoring the house to its original design if you are planning to sell it.
Everyone’s tastes are different
Unless you are able to hold out for a buyer who shares the same eccentric tastes as you do, perhaps the wise thing to do is sticking to a safe design rather than going overly quirky and different. Research on current trends and see where the market is moving towards. This can be done through social media, an architect or even by checking the most popular stays around your area.
Location is still everything
In real estate, everyone will always tell you that location is the number one consideration. If the land around your property is developed into a commercial area or it becomes desirable due to how convenient or safe it is, then you would not even need to renovate as the value will rise organically.
Easy upgrade: landscaping
One of the cheapest and most efficient ways of increasing value to your property is via landscaping. According to a realtor, you will be able to “reduce energy costs by as much as 50%” by strategically planting native trees and shrubs which can help keep your property cool. This will also “raise the value of neighboring homes”. Furthermore, there is nothing more welcoming than seeing a well-groomed garden bursting with blooms. You can even work on the garden yourself and save yourself the cost while increasing the value exponentially.
