New Zealand’s property market has been a hot topic lately. The market is moving at an extraordinary pace, providing
homeowners looking to sell a record-setting return on their investment. With the median house price continually on the
rise, homeowners are looking for the best way to optimise the selling of their homes. The increase in house prices is a
double-edged sword. As the market is flooded with options at various price ranges, it can be somewhat difficult to stand
out from the crowd and ensure you’re taking full advantage of this phenomenal market upswing.
While it is true that it is a seller’s market, there are modern-day conveniences that potential buyers have come to
expect when purchasing a house. The market may be stacked, but if you own an older house in an area that is continually
being developed, the value of your house may fall short of expectations.
A renovation before selling your house maybe your best option in optimising selling your house.Is it worth doing up your house before selling?Recladding Your Home Before Selling
One of the most common choices for renovating prior to selling is recladding. The “leaky home” epidemic rocked the New
Zealand building industry to its core and years after the fact we are still feeling its effects ripple through the
country. The huge media coverage associated with the epidemic means that the general public is educated and apprehensive
about buying a home that has any cladding features that even remotely resemble that of a leaky home. The cladding of the
house will be a common conversation that happens between buyers and their family and friends as the stigma has
effectively rooted itself into New Zealand culture. Coupling this with banks being less comfortable with lending money
towards properties that they deem as potential leaky homes, having a home with older plaster cladding (even if there is
no evidence of it being a leaky home) may be more than enough to significantly reduce its value when sold.
Secondly, recladding, in general, is a great way to modernise a home. The cladding of a home is generally the first
impression buyers will get, and if this is contrasted to a neighbourhood of more modern aesthetically pleasing homes,
the perceived value of your home may also take a hit. It is estimated that the curbside appeal of a property can make up
to a 15% difference in the price buyers are willing to pay, and modernising your cladding is a surefire way of ensuring
you take advantage of this. With the increase in price due to perception and the general increase in the price of the
house over time, the profit gained may more than warrant the price of recladding your home.Considering the layout of your home
There really are two ways to go about creating additional value before selling your home when it comes to renovating the
layout. The first is considering how the layout of your home stands up to modern standards. Older homes often lacked
modern-day conveniences in relation to layouts, such as entertainment areas being placed on the opposite end of the
house to the kitchen, a lack of open plan living, and a host of other antiquated layout features. A house with great
bones can often be turned into an open plan home far easier than many people expect and doing so offers buyers far more
flexibility with what they can do with the space. It also can create an illusion that the home is bigger than it may be.
The second option is extending the home to create additional rooms. This may be developing the basement, adding another
storey, or extending into the yard. This can be used to create additional living areas but is often used to create more
bedrooms. A large part of a house's CV is based on the number of bedrooms, and creating additional rooms may push the
value of your home into a higher cost bracket.Should I remodel my Kitchen Before Selling? What About Bathrooms?
It goes without saying that some rooms leave an impression. Putting a bit of time into renovating these rooms can pay
dividends in the overall selling price of your home. This is especially true if these are rooms that buyers can perceive
themselves getting value from. They can project its use on their lifestyle, excited at the possibilities it may have. A
great example of this is the heart of the home, the kitchen. The kitchen is a space in a home that has so much potential
for creativity, and can really serve as a centerpiece of the house. An interesting, well-designed kitchen is an aspect
of your home that is sure to leave a lasting impression and be a point of discussion when people are considering
purchasing the home. A great kitchen can be the literal deciding factor for potential buyers that love to cook and
entertain, with the cost to remodel the kitchen being far less than its potential ability to create perceived value for
the rest of the house.
Similar rules can be applied to bathrooms or creating a spectacular entertainment area. However, the more specialised
the room is, the more likely the renovation is going to cost. It pays to weigh up the cost of the renovation against the
perceived value to the buyer.Time, Convenience, and Money
There is often a false presumption that renovating properly to sell isn’t worth it because buyers will just renovate
once they move in. In reality, this couldn’t be further from the truth. With the distance between median house prices
and median income earnings increasing, many homebuyers will be highly leveraged when buying a home. This means that they
will not have the spare capital for home renovations and will be looking for a home that is fit for their purpose.
Secondly, it pays to remember that most people may have never renovated before and therefore have no idea what's
involved in doing so. This means that they will have trouble visualizing a space's potential and lack the experience to
understand what is possible if they went down the renovation process. However, this does not exclude them from
appreciating a well-planned newly renovated space. Given that they may not understand the costs involved creates the
opportunity for you to easily exceed your sunk costs with the overall sale of the property.
Finally, do not underestimate the value of convenience. Renovating can be a time-consuming process, as is buying a home.
A combination of both of these factors may be the tipping point in a buyer deciding not to pursue a property.Does renovating a home increase its value?
Renovating a home prior to selling may certainly increase its value. It is an effective means of addressing any “weak points” your
property may have that decrease it’s overall perceived value - whether that's getting rid of the “leaky home '' stigma
or modernising the layout. It can also bring it into alignment with houses in a higher price bracket through extensions
or adding features that create lasting impressions with buyers. The balancing act is choosing the correct renovations
whose costs can not only be recouped but exceeded, during the sale. Renovation Works has over 30 years of experience
helping kiwis create their dream homes and can guide you on the best options for renovating your property to pull a
better asking price. For a free, no obligations consultation, get in contact with the team at Renovation Works today