How to Increase Your Home’s Resale Value Through Renovation
We all want to turn a good profit when we sell our homes and you might think that renovation is a good way of increasing the house value when it comes to selling. There are pros and cons to this, of course. For example, you have a 4-room flat and you want to convert one of your bedrooms into a walk-in wardrobe by removing the walls between rooms. It may turn out to be a costly decision in future if buyers are looking for a 4-room flat but you can only offer them 2 bedrooms and a walk-in wardrobe that they don’t need.
“For the most part, renovations don’t play a big role in the official valuation,” said Carolyn Goh from PropNex Realty, “but when you take into consideration extras like cash over valuation (COV)–for public housing, renovations do result in a higher sale price…in fact, a well-renovated home can trigger a lot of demand from the potential buyers as people are generally more interested in beautiful and modern properties.”
What this means in a nutshell is this: don’t get too carried away during the planning process, but go for improvements that are both functional and practical. To help homeowners make sensible decisions before they sign on the dotted line, we ask Carolyn to share a couple of tips with us.
- Improve the overall liveability of the house: Renovations should serve more than a cosmetic purpose. In other words, go for improvements like relocating an ill-conceived doorway or an open-concept kitchen that make things more convenient for everyone at home. Even the tiles you use can be a strong factor in justifying a higher asking price.
- Avoid being too extensive: What may be trendy today will go out of vogue tomorrow, so go for a classic style that can be easily updated with furnishing or accessories. This means that having a themed bedroom for your kids may not be not practical down the road, especially when they grow up and cultivate a different taste.
What about removing walls between rooms to create more space? Carolyn considers it a positive step to take if it improves the overall functionality of the home e.g. human traffic or lighting, but do remember that it does decrease the number of rooms available in the flat. Of course, the selling price of your home ultimately depends on its location, current condition, proximity to amenities so try not to overspend!