One of the questions I get asked most frequently is, how do I add more value to my home without spending huge amounts of money. And it’s a great question, so I thought I’d deep dive into this a bit more for you today.
You first need to ask yourself what am I trying to achieve? Is the intention to ‘value add’ because I want to sell the property at a higher price point?
The reality is most buyers want to purchase a home that needs little or no work, they just don’t want the hassle or the cost. So it’s important if your goal is to sell your home for higher value then to present your home in its best light, achieving a desirable ‘look’ without spending too much.
You’re going to need to understand two things:
- What projects are worth doing (the goal is to on spend around 10% of the property’s value on a renovation)
- Who is the target market for the property (what is the demographic of the area)
And lucky for you guys, these are both learned skills!
Now when we go to do a DIY we want to avoid over capitalization by only spending about 10% of the property’s value on a renovation. The aim is that every dollar invested on improvements results in a return of $2.
We know that structural renovations can often yield the best returns, but there’s a greater chance they may turn pear shaped than cosmetic renovations. Simply because there’s more moving parts and they take longer. Profit can be eaten up by unseen problems and delays. A cosmetic renovation can still yield a great return if completed to a high standard.
Here are my tips for renovating for less than $20K:
1. Pick Up That Brush and Paint
Nothing improves a homes appearance as easily or as cheaply as a fresh lick of paint does. It costs around $4000 for inside and $5000 for outside (including external walls) for an average 3 bedroom , 2 bathroom home to be professionally painted.
While, DIY painting should cost around $500 for inside and $700 for the outside (including external walls)
2. Floor Finishes
The floors of a home are the single largest visual area so it is a good idea to present a floor that’s appealing. Fresh flooring will make the buyer feel that the house is clean and inviting.
Rip up that old carpet and polish the timber floors if the homes has them – $4000 for the average sized home. Install new carpets – $3000 – $10000 depending on the quality and type selected.
These days linoleum flooring comes in some great finishes, like timber look planks or tile look and is often cheaper than carpet – $2000 – $3,000 – for an average sized home
3. Good Lighting Changes Everything
Let there be light! Keep the place light and bright. Open up the blinds, curtains and windows to let light and fresh air in. Keep it simple when you think of lighting and just replace outdated lighting with simple contemporary styles. There is a huge variety at Bunnings & Mitre10.
4. Revamp the Kitchen
Nobody likes a grotty kitchen!
Here are some simple ways to freshen up your kitchen:
- Cupboards – The cheapest option is to paint the cupboards – use specialised paint for laminated surfaces – $200 for a small kitchen
- Hardware – Replace the handles with new metal or timber ones – $160
- Benchtop – Install a new benchtop – DIY laminate starts at around $50/Sq Mtre at places like Bunnings or $200 /Sq Mtre customised
- stone veneer benchtops – $250/SqMtre
- solid stone benchtop – $450/Sq Mtre
- New Tap Fittings – for less than $200 will replace a sink tap with a stylish modern fitting
- Appliances – if they are working and cleanable, then don’t replace these. However, if they are broken or in terrible condition, look out for sales or factory seconds to save costs.
5. Bathroom Refresh
Just like the kitchen, small changes can have the most impact!
- If the wall tiles are outdated but in good condition, I suggest using tile paint and paint them all white – $200
- For the floor it is better to replace old or broken tiles, re-grout or cover the entire floor with a tile look linoleum and just upgrade the shower tiles
- Add new taps or at least tap heads – $50 +
- Paint the vanity if it is in good condition but replace it if it isn’t worth salvaging Replacing it will only cost – $250 +
- Style with lovely, colour coordinating towels
Create an inventory list for the home, identifying what requires attention and the best cost effective way to make those improvements. It really is worth the effort, to live in or to add value before selling.
You can download my FREE checklist here and work your way through it to get sell ready!