If you’re a homeowner looking to increase the value of your property, you’re in the right place. Renovations can be a game-changer when it comes to boosting your home’s worth, but not all projects are created equal.
In this blog post, we’ll discuss seven major home renovations that can significantly impact your property’s value – and we’ll explore the pros, cons, and potential return on investment (ROI) for each one.
But before going any further, let’s address a question that might be on your mind: “Why should I even bother with renovations if I’m not planning to sell anytime soon?” Fair point! While renovations are often associated with prepping a home for sale, they can also enhance your living experience and create a space that better suits your needs and lifestyle. Plus, well-planned renovations can pay off big time when you eventually do decide to sell.
The kitchen is often referred to as the heart of the home, and for good reason. It’s where families gather to cook, eat, and create lasting memories. That’s why a kitchen remodel can be one of the most valuable renovations you can undertake.
Potential Value Increase: According to Remodelling Magazine’s Cost vs. Value Report, a minor kitchen remodel can recoup around 72% of its cost at resale, while a major kitchen overhaul can deliver a potential 59% return.
bathroom powder room in black and gold with sink and bronze fixtures
Alongside the kitchen, bathrooms are another high-impact area when it comes to home renovations. A modern, well-designed bathroom can be a true game changer– not to mention a major selling point for potential buyers.
When considering bathroom renovations, the potential value increase is significant. According to the same Cost vs. Value Report, a mid-range bathroom remodel can yield around a 60% return on investment.
Are you looking for bathroom renovations in Camberwell, Canterbury, or Mont Albert? Our fully licensed and insured team can provide end-to-end assistance at an affordable price. Contact us today for an initial consultation!
Finished basements can be a game-changer, adding valuable living space to your home. They can serve as additional bedrooms, entertainment areas, home offices, or even rental units (subject to local regulations).
Potential Value Increase: According to Remodelling Magazine, a basement remodel can yield a potential 70% return on investment.
Outdoor living spaces have become increasingly popular, and for good reason. They provide a versatile area for entertaining, relaxing, and enjoying the great outdoors.
Potential Value Increase: According to Remodelling Magazine, a wood deck addition can potentially recoup around 66% of its cost at resale.
While not the most glamorous renovation, a new roof can be a crucial investment in your home’s value and longevity.
Potential Value Increase: According to Remodelling Magazine, a roof replacement can potentially recoup around 60% of its cost at resale.
Replacing outdated or inefficient windows can not only improve your home’s energy efficiency but also enhance its curb appeal and overall value.
Potential Value Increase: According to the Cost vs. Value Report, window replacements can potentially recoup around 68% of their cost at resale.
First impressions matter, and your home’s exterior is the first thing potential buyers (or guests) will see. That’s why landscaping and exterior upgrades can be a worthwhile investment.
Potential Value Increase: According to the National Association of Realtors, well-landscaped homes can potentially command a 5-15% higher price than homes with poor landscaping.
Remember, it’s essential to strike a balance between personal preferences and broad appeal. Consider consulting with a real estate professional or contractor to get a better understanding of the specific renovation you should be going for.
Here are some best practices you can follow when it comes to planning and executing your home renovation.
Before starting any renovation project, it’s crucial to identify your primary goals. Are you looking to enhance your living experience, increase your home’s resale value, or both? Knowing your priorities will help you make informed decisions about where to allocate your resources.
If your goal is to improve your daily living experience, focus on renovations that cater to your specific needs and lifestyle. For example, if you love to entertain, consider investing in an outdoor living space or an open-concept kitchen and dining area. If you work from home, converting a spare room into a dedicated home office could be a game-changer.
On the other hand, if your primary objective is to maximise your home’s resale value, it’s essential to consider the preferences of potential buyers in your local market. Work with a real estate professional to understand the features and upgrades that are most in demand and prioritise those areas.
One of the biggest challenges when it comes to home renovations is striking the right balance between personal preferences and broad appeal. While it’s tempting to create a space that perfectly aligns with your individual tastes, it’s crucial to remember that potential buyers may have different preferences.
To strike this balance, consider incorporating neutral colour schemes, timeless finishes, and flexible design elements that can easily be adapted to different styles and preferences. For example, instead of installing highly personalised tile or wallpaper, opt for classic subway tiles or a fresh coat of neutral paint, allowing potential buyers to envision their own personal touches.
Additionally, avoid over-customising or overbuilding for your neighbourhood. While it’s essential to create a comfortable and functional living space, it’s crucial to ensure that your renovations align with the general standards and expectations of your area. Over-investing in high-end finishes or features that are significantly above the norm for your neighbourhood could potentially make it challenging to recoup your investment.
When it comes to home renovations, it’s essential to carefully consider your budget and potential return on investment (ROI). While certain renovations, like kitchen and bathroom remodels, tend to yield higher returns, it’s still crucial to manage your expectations and avoid overspending.
Work with a contractor or designer to develop a realistic budget that accounts for not only material costs but also labour, permits, and potential unforeseen expenses. Be prepared for the possibility of unexpected challenges or delays, which can quickly inflate the overall cost.
Additionally, consider the potential ROI for each renovation project. While some projects, like a kitchen remodel or landscaping, may yield a higher return, others–like a basement finishing or deck addition–may have a more modest impact on your home’s value.
Consult with local real estate professionals to understand the typical returns for various renovations in your area. This information can help you prioritise projects that are likely to yield the highest returns and avoid over-investing in areas that may not significantly impact your home’s value.
When it comes to home renovations, timing can be crucial. While some renovations, like a new roof or window replacements, may be necessary for maintaining the integrity and functionality of your home, others, like a kitchen remodel or landscaping, can be more flexible.
Consider your long-term plans for the property. If you intend to stay in your home for several more years, prioritise renovations that will enhance your daily living experience and enjoyment of the space. However, if you plan to sell within the next few years, focus on projects that are more likely to appeal to potential buyers and yield a higher return on investment.
Additionally, be mindful of potential future trends and shifts in buyer preferences. While certain renovations–like energy-efficient upgrades or smart home technology–may be in high demand today, tastes and trends can change over time.
Consult with industry professionals, such as real estate agents, designers, and contractors, to stay informed about emerging trends and potential shifts in buyer preferences. This knowledge can help you make more informed decisions about which renovations are likely to have long-term appeal and value.
Finally, one of the most crucial aspects of any successful home renovation project is hiring reputable and experienced professionals. From contractors and designers to architects and real estate agents, working with skilled and knowledgeable experts can make a huge difference in the outcome and value of your renovations.
When hiring professionals, be sure to vet their credentials, experience, and references thoroughly. Look for contractors who are licensed, insured, and have a proven track record of successful projects similar to yours. Don’t be afraid to ask for portfolios, references, and detailed estimates to ensure you’re making an informed decision.
Additionally, consider working with a real estate agent or home inspector who can provide valuable insights into the potential impact of various renovations on your home’s value. Their expertise and local market knowledge can help you prioritise projects and make informed decisions about where to allocate your resources.
Ready to start your renovation journey? Get in touch today!
Undertaking home renovations can be a daunting task, but with the right guidance and expertise, you can transform your living space while maximising your property’s worth. As you get started on this journey, consider partnering with a reputable and experienced construction company like DPV Construction.
With extensive industry experience, our team of highly skilled tradespeople is backed by a reliable network of trusted suppliers, giving us access to premium materials and resources. This mix of expertise and top-quality materials produces exceptional results that enhance your daily living experience and boost your home’s overall value.
So, if you’re looking for home renovations in Armdale, Balwyn, or Burnwood, contact us today to bring your vision to life!
