Thinking of selling your home? Then this is the post for you!
Welcome to our two-part series on how to add value to your home. In this post (Part One) we’ll outline some guidelines to consider so you don’t spend more on your property than you add in value. In Part Two (next week) we’ll go into more detail on the top 10 tips and tricks which can add instant value to your home.
Ready? Let’s go!
Consider what the Market Wants
This will depend on two things:
- The area you live in – different suburbs attract different people – your property might be in a suburb that’s popular with young families. If so, is your property suitable for families with young children? This leads to the next point;
- The type of property you own – consider how your property might appeal to the majority of people living in your suburb. The more people that want your property, the higher the price – create a bidding war and you’re more likely to get some great offers.
Have a chat with your Real Estate Agent to find out what people are looking for in your type of property. You could also do some research into your suburb demographics to provide further insight.
Don’t go too bold with colour palettes
Stick to your soft, muted, neutral tones – greys, stones, creams, etc – but use colours to define spaces. Bold colours can date very quickly and not everyone is going to share your taste in colour. As mentioned above, make sure your property appeals to the market.
For extra colour tips and trends, check out the latest from Resene here.
Seen vs Unseen
When a prospective buyer enters your home, their first impressions will be on the things they can see (landscaping, kitchen and bathroom renos, a fresh coat of paint, new carpets or floors, etc), not necessarily the things they can’t see (eg. structural work, re-stumping, electrical works, etc).
Consider the balance carefully; in some cases the unseen works are incredibly important, especially if you’re wanting your home to pass building inspections (and why wouldn’t you!?). However the unseen works often cost more than the value they add to your home. There’s a general rule that the upgrades you can see are the ones that will increase your value, moreso than the unseen upgrades.
If you’re thinking of doing any renovations before selling, contact Beachside Construction. We don’t just build custom homes, we do renovations too!
Consider the affects of the Banking Royal Commission
We’ve all heard about it on the news and read about it, but how has the Banking Royal Commission affected home loans, and how does it affect your property? Banks have always acted conservatively when it comes to valuing your property, but since the Royal Commission, they’ve become even stricter.
Last year the Australian Financial Review wrote an article on how the Banking Royal Commission might affect you, here’s an excerpt:
So what does this mean for you and your property value? It might be worthwhile seeking a property valuation before you commence any renovations or upgrades – get an idea of what your property is worth and then work out your budget for value-adds. However it’s also important to remember that banks don’t match the money you put into value adds dollar for dollar, so while you may spend $20,000 on a new kitchen, the bank won’t necessarily value your property $20,000 more.
“It is widely expected Hayne’s crackdown on irresponsible lending could make it even harder for occupiers and investors to get a home loan.
“One of the sticking points in the banking royal commission was banks’ irresponsible lending practices and their reliance on a benchmark, known as the household expenditure benchmark (HEM), in approving home loans.
“HEM has been criticised by the royal commission for being a too conservative figure in estimating household expenses and Hayne is questioning whether banks should continue to use it to benchmark borrowers’ living expenses.” (You can read the full article here).
So there you have it, some guidelines to consider when adding value. Tune in next week when we discuss the top 10 tips and tricks which can add instant value to your home.
If you’re selling your home and looking to do some renovations, or looking to build a new home on the Sunshine Coast, contact Beachside Construction (QLD). We’d be more than happy to discuss your future property plans.