10 great tips for putting value into your home with a renovation or building loan
1) First impressions last
The first thing a valuer sees is the outside of your home. You need to make sure the gardens are trimmed and the lawn is neatly manicured with some liquid garden fertiliser sprayed around with a hose (this alone can make a real difference in just a week or two).
Get fresh mulch and weed the garden, which isn't a huge cost and it gives a good first impression. You may want to replace the front door or add a fresh coat of paint to the existing door. Also, you can't overestimate the importance of neutral colours. If you choose to have the exterior repainted, you should make sure it's a neutral colour.
2) Success is in the details
The three most important areas in the home are the kitchen, bathrooms and the toilets. Check with recent interior decorating and design magazines and visit display homes to acquaint yourself with modern trends; it is likely that valuers and/or purchasers will be familiar with new trends, so any such improvements will likely add value. Home owners who undertake major bathroom-remodelling jobs often see up to 95% of their costs recouped!
Beyond major renovations, simply replacing towel racks, light fixtures or the sink can make a significant difference to potential buyers or increase rental value. If there is mould behind the silicone sealant in the bathroom and/or around the kitchen sink, remove the sealant and reseal the area. Ensure that toilets are spotless, and for thick rust stains in the bowl, get some Harpic Crystals from your local supermarket.
3) Refresh, refresh, refresh
The most important thing about the kitchen is that it is clean, tidy, reasonably up-to-date and in good repair. It is perhaps wise to replace the stove if it looks in any way off-colour. Ensure that it is suited to your style of home and that it doesn’t look tired or worn out. Is the colour new and inviting? Get lots of light in the kitchen!!!
Spend time researching modern trends and display homes. Always try to avoid anything that will date easily. Avoid clutter in the kitchen and keep it spacious. If, for example, your kitchen counter is full of appliances and knickknacks, you may choose to leave one or two appliances out, but the rest have to go. Kitchens and the bathrooms often sell the house. Structural problems could block a sale, but the kitchen and the bathrooms alone could sell it or obtain a higher valuation (which may also mean higher rental returns!).
4) Less clutter is better
A house shows much more potential and is more sellable if it has less “stuff”. Clutter is an easy thing to attack. The goal is to make the house look spacious, like a model home. The idea is to make the home as unemotional or personal as possible so that valuers can relate to space, and potential buyers/tenants can imagine themselves living there.
5) Cover the inches
A valuer or building inspector will spot the smallest discrepancies. When there is mould, mildew, leaks, stains or any evidence of dirt, these are recorded. When it comes to plumbing, unless you are somewhat of an expert, consult your plumber or handyman. Spending a few hundred dollars on a top-to-bottom cleaning is a small investment to make when thousands of dollars are at stake in the selling price. Also, a fresh paint job (with neutral colours) is almost a prerequisite to obtain the highest possible valuation.
6) Make sure you have the papers
When it comes to valuations, always ensure that all previous renovations and additions to the home are council approved. A valuer will undervalue a home if there is any hint that property doesn’t have council approval. Valuers are aware of building engineering, so don’t just leave it to chance that the valuer will overlook structural defaults.
7) Let there be light!
For the best valuation, areas that are well lit will add value. Research says that, in general, older people are more sensitive to glare than are younger people, and many people prefer indirect lighting to direct lighting. People often prefer lights to be tucked away, so the light source is masked. Nice warm colours are also appealing. Also advisable: on darker days, leave the lights on and the curtains open.
8) On the nose
You may love your dog, but that doesn't mean future owners need to be reminded of its presence. As a rule, I had a policy that pets were not allowed in my rental homes. I relate to experiences with family pets and other people’s pets. As much as we love our pets, and to us they’re not smelly, pet smells, cigarette smells and food smells tend to linger.
If, after a major cleaning and carpet washing, particular smells haven't been eliminated, spending a few thousand dollars on good quality replacement floor coverings will more than pay for itself in the sale price.
9) Looking up
The biggest concern for valuers is the roof. If your roof is 5 to 10 years old, you may be OK. But a roof that's 17+ years old may be a problem. If there are any deferred maintenance issues, buyers may run away – even if they love the house. The more problems the buyer finds, the more they are going to want to negotiate the price down.
Buyers and valuers tend to want two times the cost of the repair off the price. The more you do yourself, the more cost-effective it is for you. Wash down a tiled roof with a pressure spray and get a tiler in to repoint the roof if it is necessary. There is nothing better than a clean roof, and make sure there is no grass growing in the gutters!
10) Taste is personal
Any unique touches in your home (eg. a flaming red dining room, dark brown walls in your kitchen or turquoise or bright blue feature walls) may have been acceptable to you and your family, but future buyers, and particularly valuers, won’t see it that way. Unique or conspicuous items would also be best taken out of the house.
You may see how quickly the Reno Kings on TV sell houses. The reason is they are very unemotional about the home. They come in, paint the house neutral, do some landscaping and put it back on the market. It's just a product to them; if you’re serious about return on investment, then that’s what it needs to be for you too.