Home Renovation Tips to Maximize the Valuation of Your Property

Home Renovation Tips to Maximize the Valuation of Your Property

Posted on July 2, 2020 by Mirren Property Investment

Renovating properties may seem like an easy way to earn real estate money and increase the value of your home. All you need to do is buy cheap property, add improvements, then increase the price. Sounds simple, right? Not quite. 

While renovating can indeed help you maximize profits, it’s not as easy as it may seem. Although your main plan is to make your property attractive, you need to follow a strategy to ensure your renovation will be successful. 

So how do you start a profitable renovation project? Here’s a beginner’s guide on how to renovate your home and maximize your profits during selling: 

Understanding Valuation

If you want to learn how to properly price your investment property, you first need to grasp the concept of valuation. This is important to ensure that you don’t overcapitalize the property or make uneducated guesses about the profit you will make. 

According to Investopedia, accurate real estate valuations “can help investors make better decisions when it comes to buying and selling properties”.

People who assess property values are called “valuers” and they follow a specific method in measuring the price of each investment property. When they inspect properties, they consider three important elements of your home: 

1) Land– this includes your location, size, topography, and the dimension of property

2) Dwelling  – this includes house age, construction, and condition.

3) Site improvements – this includes fencing, landscaping, pools, or other constructions built separately from the house itself.

Someone who doesn’t understand valuation can price their property ridiculously high, which can affect its sale position in the market.  

Know Your State Building Regulations 

Now that you know a bit more about your home’s value, let’s proceed to the second most important step in maximizing your valuation: planning. 

Before renovating a house or unit you might need a council or body approval first. Most of the time, you don’t need approval for interior renovations, however, if you plan to change exteriors or walls in the property then you may need council approval. 

It’s a grave mistake to start renovating without knowing the rules and regulations of your state. There are also penalties and fees for people who skip this step. 

Determine Your Budget 

Every renovation starts with a budget. Plan how you would allocate your money for the property. 

Don’t cheap out on important products or materials just to save money.  

If you want to cut costs, be smart about it. Opt for low-cost finishing materials. Try to retain the same layout of the room so you don’t have to spend time moving big appliances like gas ranges or sinks. 

Another important thing to remember: save some extra funds for an emergency. Don’t forget miscellaneous funds for repairs and unexpected problems you’ll have to deal with during the renovation process.  

Research Design Trends

You can’t just put everything and anything you like to see in your property. You need to be intentional with your design. 

Before doing renovations, make sure you do your homework. 

Is there a particular design that’s unique to the neighborhood? 

Who are your potential buyers? 

What design do you think will appeal to them? 

Refining The Exterior

Your house’s exterior is actually the first impression you give to the buyer. It’s what they’ll most likely see first when you post photos of your property online. 

The best way to renovate your exterior is through a paint job. It will refresh the look of your home and make it look neat and brand new. 

When upgrading the exterior of an old home, it’s also important to focus on the most important eyesores: dirty paint, rotting siding, cracks (if its a brick home), or damaged roofing. These little things can be a big turn off that can affect your house’s valuation. 

Landscaping 

A beautifully landscaped patio can be your property’s best selling point, so make sure you’re also including it in your renovation.  

Transform boring parts of your yard into gardens or new pathways can be a good renovation plan. Also, instead of changing the slope of your garden, embrace it and work with what you have. 

Upgrading Kitchen

The kitchen is another important area to focus on in your renovations. The kitchen is the heart of the home. It’s where most conversations, family gatherings, and special moments happen. If you want your property to stand out, pay attention, and focus on renovating the kitchen.

Since most buyers want a functional kitchen that includes modern appliances and ample storage, experts say the kitchen is where you should allocate the most money if your renovating interiors. However, it doesn’t mean that you should overdo it. A great trick for remodelling kitchen is to refinish kitchen cabinets. This can create a brand new look and feel within the space. 

Upgrading Bathroom 

Like the kitchen, the bathroom can be one of your property’s best selling point. The more functional and aesthetically pleasing your bathroom, the greater the chance it will attract buyers. When renovating the bathroom, don’t forget to add storage. 

The bathroom storage should be simple, space-saving, and functional. You don’t want to put a large storage cabinet in an already small bathroom. 

Replace Flooring or Carpets  

The floor is also one of the first things that buyers will notice when entering your property. To exceed buyer expectations, you need to keep your property’s flooring updated, clean, and stylish. This is why it is essential to fix broken tiles, replace old carpets, and polish dirty hardwood floors.