What Type of Improvements Add Value to Your Home?
– Remodeling to Add Value
You are thinking of selling your house in the next couple of years and are wondering
what you could do to make it more valuable without costing the earth. How can you
go about remodelling to add value to your home and not use all your savings etc.
A remodeling loan can help with this but you need to know what to change
and what to keep.
There are two types of changes that are worthwhile doing.
- Changes that add value to the price of your home
- Changes that remove obstacles to selling (or make it easier to sell).
There are are also two types of changes you want to avoid.
- Changes that cost you money and don’t add value to the home.
- Changes that over capitalize, i.e. they increase the value of the home
but not by the amount you spend!
Here are some ideas you could think about implementing when remodeling
to add value.
Yard Landscaping – A nicely landscaped yard creates a great first impression and
sets up the potential client in a receptive mood. It may be as simple as putting
in a path and adding a couple of flower beds with some attractive shrubs.
Insulation – A warm home is a welcoming place. Insulation can be added to the
ceiling or attic space or underfloor. This is relatively inexpensive and improves
a house’s livability by ensuring the temperature is correct for healthy living and
preventing mould and condensation from causing problems.
Heating or Cooling. Aircon or oil burning Furnace. Adding or replacing this may not
actually increase the value of the home by the amount you spend on it so caution
is required.- It may be better just to get it serviced. Seek advice from your lender.
Stippled ceilings. these really date a home and are best replaced by attaching drywall
over the top. This gives a crisp modern look to rooms replacing the “Granny” look of the ‘60s!
Artificial wood panelling. (mdf etc) replace with drywall if you can. As above, don’t overspend.
Create an extra bedroom from an attic or basement. If there is an unused basement or attic,
converting it to a bedroom usually adds good value to a house. There is quite a premium
in price between a three bedroom and a four bedroom house for example. If you already have
four bedrooms you could instead put a media room in the basement. This can work really well
but make sure wiring and or equipment can be easily removed or added to by future owners.
Bathroom Upgrade. Remove the old plumbing and fixtures and replace them with modern ones.
A better option may be to completely remodel the bathroom but be careful not to overspend.
You can get very good modern tap-ware and porcelain without getting top-of-the line items
and the cost difference can make the difference between a profitable upgrade and over-capitalizing.
Kitchen Makeover Old style cupboards and bench-tops? The same applies about over-spending.
Check out specialized kitchen renovating companies as they are experts and have all the modules
and expertise you need.
This is not an exhaustive list. A renovation loan used wisely can help you get top dollar for
your property if you do it right, but discuss it with your lender guys as they are experts,
not only with your renovation loan but also with the items that really add value to your home.