There are plenty of benefits to renovating or extending your home—not only can it improve the aesthetic, functionality and liveability of the home, but it can also significantly increase the value of the property.
If you’re planning a home renovation or thinking about adding an extension and want to know which features are likely to have the biggest impact on the value of your home, here’s our take on what’s likely to get a good return on your investment…
The facade plays an important role forming a buyers’ first impression of the home and establishing that all important ‘street appeal’. It sets the style and character of the home and should give buyers an idea of what to expect from the rest of the home.
As a minimum, the facade should feature neat and tidy presentation to project a low-maintenance feel, with well-maintained gardens and nothing requiring repair. As the facade won’t have a significant impact on the overall liveability of the home, it’s best to avoid investing in major changes where possible and to instead focus on simple updates like fresh paint or new fixtures like the house number and letter box.
Money spent in the kitchen will almost always be money well-spent.
As the ‘heart of the home’, the kitchen is renowned as one of the best areas of the home to renovate if you want to add value. Not only does it play a key role in the day-to-day functionality of the home, but it also makes a real style statement.
Integrating features like premium appliances, luxury stone or porcelain benchtops, intelligent opening/closing mechanisms or a butlers’ pantry will instantly elevate the prestige of the home and add major buyer appeal.
When designing your kitchen, select your fittings and finishes to compliment the style of the rest of the home and don’t be afraid to invest in some superior features and finishes—for example, custom cabinetry will cost more, but it will allow you to maximise the available space and provide valuable extra storage.
Bathrooms are another area of the home that can add significant value to your home, but it is possible to over capitalise on them.
At a minimum, buyers will expect bathrooms to be clean and functional, but a stylish contemporary bathroom renovation will be sure to impress. This is particularly important in homes with a single bathroom—while buyers may be able to overlook a second or guest bathroom which requires updating, it’ll be harder to convince them to spend top dollar if the home doesn’t have at least one bathroom in top-notch condition.
If you’re questioning whether adding an additional bathroom would add value, this largely depends on the home—adding a second bathroom to a single bathroom dwelling is likely to add value, while adding an additional bathroom to a home with two or more bathrooms may not be worth the investment.
Adding a contemporary living extension can add enormous buyer appeal and drive up the value of your home, particularly for older homes which don’t traditionally adopt the open-plan format todays’ buyers prefer.
We’ve seen enormous growth in demand for this style of extension in recent years, largely because they allow homeowners to improve the liveability of their home while retaining its character and charm. It’s also a more affordable alternative to rebuilding, while making a dramatic improvement to the functionality and aesthetic of the home.
Whether you add a living area to the rear of the home or you add an upstairs extension, most family homebuyers value having a second living area and will pay a premium for it.
If you’re looking purely at renovating, major changes to bedrooms are unlikely to add significant value. In this case, it’s generally a good idea to stick to simple updates like repainting, replacing tired or damaged flooring and window coverings, or installing built-ins.
If you’re considering adding an extension with an additional bedroom, it’s worth doing some research to determine if it’s likely to give you a good return on your investment. Consider the location, size and style of the home and what the buyer demographic in the local market looks like. Check what the average price of 3, 4 or 5 bedroom homes are selling for in your local area to gauge how much value it’s realistically going to add.
An alfresco living space is almost always a good investment.
Most buyers will expect some form of outdoor space suitable for relaxing and entertaining guests. Whether you opt for paving, timber or composite decking, if it’s welcoming and relatively low-maintenance, it’s sure to appeal. An under-cover alfresco area will yield even more buyer appeal by allowing year-round use, particularly in Melbourne’s varied climate.
If you’re considering adding a pool, think it through carefully—adding a pool purely to add value before selling is unlikely to be a worthwhile investment, however if you plan to stay in the home for a while, you may be able to justify the expense.
Get the most value from your home renovation or extension
If you’re planning a home renovation or extension in Melbourne, our unique value management process can help you get the most out of your investment. To find out more, get in touch with the team at APC Build.