Deciding to renovate any part of your home before selling is a serious
investment decision.
While you may feel your home needs a fresh kitchen or bathroom, how would you know if a new installation had paid dividends once the sale was signed and sealed?
Is it really worth spending $20,000 on European appliances to appeal to buyers, or sinking $30,000 and more into a major bathroom renovation?
Would it be a practical idea, anyway? After all, this work doesn’t come without its frustrations and inconveniences. And you’re not going to be the one who will enjoy the benefits.
If you’re considering a five-figure upgrade to any part of your home, we’d suggest talking to a real estate agent before committing the cash.
Local agents will know which features are regarded as premium by today’s buyers.
Many agents will suggest limiting a kitchen renovation to between 5%-15% of your home’s total value. Spending any more would risk over-capitalisation of the asset – in other words, you’d lose money.
Consider inviting an agent to your home to give an opinion on the improvements that would actually maximise the value rather than improve it without financial reward. Our team would be delighted to assist you.
Here are some improvements to a kitchen that might appeal but would add little value.
Specialised enhancements – Creating the perfect chef’s kitchen will be appreciated by a very limited number of potential buyers. For the majority, it will either not appeal or be considered irrelevant. It’s more valuable to enhance the benchtops and offer plenty of work space.
European appliances – Professional-grade appliances are often cited in the descriptions of apartments or houses, but it becomes increasingly hard to justify the expense when the prices continue to rise. Put simply, spending $20,000 on appliances is a bit of a rounding error when the average price of a property is over $1 million in some of our capital cities. If the new owners want European brands, let them pay for it.
Trendy splashbacks – Any experienced agent will recommend you adopt a neutral tone for your kitchen. Colours date kitchens. For example, red backsplashes or red cabinets scream, “five years ago”. If you want to be on trend now, install black tapware. Generally speaking, keep your colour combinations low-key.
Island layouts – Everyone loves an island bench, but don’t install one in a cramp or difficult space. If you obstruct the flow of a kitchen with an island bench, you’ll have wasted your money and you’ll lose a lot of potential buyers, too.