Renovations are often at the heart of an owner’s strategy to maximise the value of their home, or for investors seeking top-dollar from rental income.
But which renovations really sell a property or attract a top-paying tenant?
Most focus falls on bathrooms and kitchens – two areas that are expensive to upgrade because of the complexities that come with water and electricity being in close proximity.
These projects are expensive and do not happen quickly, of course.
If you’re planning to renovate either area with the ambition to sell in the near term, you’re more than likely looking at an early summer sales campaign.
Certainly, owners in the middle and upper-tiers of the real estate market are investing heavily in modern kitchens and bathrooms.
They’re confident they’ll get a good return on investment thanks to the growing momentum of the market created by recent cuts in interest rates.
American research shows nearly 80% of millennial homebuyers – now a significant market segment – prefer homes that need no improvements. Kitchens that reflect modern design and functionality meet their expectations.
A new report suggests we’re likely to see more kitchen renovations in the coming months as the property market picks up steam.
Presale home renovation company Revive has released its own research to suggest kitchens are the most common and profitable room to renovate before listing a home.
It says its own kitchen projects deliver a 112% ROI to generate over $164,000 in added value.
Kanika Aggarwal, a 20-year industry veteran working with Revive, said: “We hear that all the time from real estate agents that the kitchen is often the centrepiece of the listing.
“It’s where buyers imagine their lives unfolding. A dated or dysfunctional kitchen is an immediate dealbreaker, but a fresh, inviting one? That’s where the magic happens,” she says.
Revive says it undertakes projects for all sorts of improvements – and in 70% of cases, kitchen upgrades are included.
Here is a quick list of on-trend requests and approaches from owners:
Classic style – Classic kitchen updates, such as new cabinetry, flooring and lighting are the top of sellers’ wishlists.
Be smart – Owners want smart appliances included in any upgrade. These might include cutting-edge, internet-enabled fridges, microwave ovens, induction cooktops, air fryers and precision cooking appliances.
Using AI – Owners are working with agents to use AI to decide which features will best influence buyers in the current market.
Gauging ROI – Artificial intelligence is also being used to assess the return on investment. Revive says it uses analysis of more than 1,200 projects to make calculations for its clients.
Sales dynamics – Research suggests a renovated kitchen will attract multiple bids, improve the sales price – sometimes by up to 20% – and accelerate the speed of the deal.