Renovations can be an exciting time for homeowners, but rushing into upgrades may lead to regrettable decisions. If you’re making renovations, you’ll want the value of your home to improve after the work is done.
Spending money on renovations that add no value to your home is undesirable. Learning about what contributes towards a home’s worth and the common renovation mistakes people make can help you make informed renovation decisions.
The existing value of the property can be found through an independent valuation service in Sydney. Professional valuers can also provide insight into what needs to be done to the home to boost its appeal.
Renovation mistakes to avoid
Homeowners often make ill-informed decisions when it comes to renovations; it can have disastrous consequences. Doing the proper research and taking the appropriate steps to prepare can help you make sure you make the right renovations at the right time.
Some common renovation mistakes include:
Inadequate planning
Proper planning is key for overseeing successful renovations. Rushing into upgrades without a carefully thought-out plan can lead to significant delays, going over budget, and general dissatisfaction with the end result.
Unrealistic budget
When setting a budget, you need to account for all possible costs including such things as materials, labour, permits, potential contingencies and unexpected expenses. Going over budget can be disastrous and leave owners in a financially vulnerable situation.
Cheap materials
Using cheap materials can have disastrous consequences. Your renovations may end up deteriorating at a swift rate; leading to no added value and a large amount of money spent.
Neglecting permits
If you ignore permits and relevant building codes, you may end up dealing with legal and even safety consequences. A professional valuer can provide insight into the relevant building regulations, permits and zoning laws that must be met.
Overpaying for upgrades
Spending an exorbitant amount on renovations that add little to no value to your home is a bad idea and may result in a reality of financial vulnerability.
What adds value to a home?
The right renovations can add great value to a home. Residential valuation services can help homeowners determine what exactly they can do.
While not every element of value is in the control of the homeowner (location, market conditions, economy), there are some reliable ways to increase a home’s worth. These include:
Adding square footage
More space is equal to a higher value. Building onto your home by adding an extra bedroom or bathroom, or perhaps an office or studio, can add great value to your property.
Upgrading the bathroom
Renovating your bathroom is generally a reliable way of improving value. A modern, and spacious bathroom is attractive to investors and buyers of all kinds.
Upgrading the kitchen
Much like the bathroom, the kitchen is essential to value. A spacious and well-designed kitchen with refurbished countertops and cabinets appeals to potential buyers.
Revitalise outside areas
Creating an attractive deck, patio, barbeque area, or general outside space is likely to improve the market value of your home.
Take care of repairs and maintenance
Any damaged walls, materials, electrical work, and pipes can significantly decrease the value of your house.
Replace old flooring
If your floors are damaged or unattractive, upgrading can do wonders for value. Solid hardwood flooring is a great and reliable choice.
Adding storage space
Garages, sheds, extra shelves, and any other means of storage can add significant value to a home. A place to store products, vehicles, or any other additional items is key to value.
Finding market value
The most precise and reliable method of finding the market value of a property is to hire a professional valuation service. A qualified valuer is a real estate expert registered with the Australian Property Institute (API).
These accredited experts have the tools and experience to prepare reports that accurately reflect the market value of a property. A valuation report is seen as certified proof of value; giving property owners a definitive outline of exactly how much their real estate is worth.
Professional valuers cover every contributing factor when it comes to value and reports can often be used as a tool to determine where renovations or upgrades are needed.
Other tools for finding market value exist, such as real estate appraisals and online valuations, but neither are as precise as independent valuation reports. With a valuation report, you get an unequivocal and reliable assessment of market value.
Summary
All over the world, homeowners tend to make the same renovation mistakes. Nobody wants to have regrets after spending money on upgrading a home, highlighting the importance of careful preparation.
A few of the most common mistakes people make include mismanaging their budget, inadequate planning and research, the use of cheap materials, neglecting permits, and overpaying for upgrades. Renovation mistakes can have dire consequences and leave you in a potentially financially vulnerable situation.
There are, however, some fairly reliable ways homeowners can improve value. Some renovations owners can make to increase value includes upgrading the bathroom and kitchen, adding storage space and square footage, enhancing the street appeal and outside areas, and taking care of any damage or issues in need of repair.
At Valuations NSW, we are industry leaders with decades of valuation experience. If you’d like to learn more about our independent property valuation services, feel free to give us a call today to speak to an expert.
