Aussies love a good reno. In the September quarter of 2023 alone, we splurged more than $3 billion on alterations and additions to our homes. Instead of spending on holidays and dining out, we poured our cash into our homes. But, as excited as we get, let’s not fall into the trap of overcapitalising.
Overcapitalisation is when you spend more on renovations than you get back in property value. Imagine spending $150K on upgrades and only adding $75K to your resale value—ouch! So, let’s be smart about where to invest.
Assess Your Home’s Potential
Start by taking a good look at your home’s strengths and weaknesses. Highlight awesome features like a spacious layout or great natural light. Be honest about any outdated décor or worn-out fixtures. This will help you focus your efforts and budget where it really counts.
Budget Like a Pro
Set a realistic budget based on your home’s market value and what you expect to gain from the renovations. For instance, major renovations might cost up to 40% of your home’s current value. For a $1 million home, that’s up to $400K for big stuff like a new roof or redoing the floor plan. So, if you’re on a tight budget, focus on cosmetic changes, which should be much cheaper, around 1% to 5% of your property’s value. Think new paint, updated fixtures, and fresh cabinetry.
On a budget? Read our blog here for cost-effective renovation tips.
First Impressions Matter
Don’t forget the exterior—first impressions are everything! Boost your property’s curb appeal with some fun landscaping, a fresh coat of paint, and an updated front door. A tidy, inviting exterior sets a positive tone. Inside, refresh paint and wall treatments with neutral colours to create a blank canvas for potential buyers.
Let the Sunshine In
Adelaide’s sunshine is gold. Install bigger windows, skylights, or glass doors to let the light flood in. Homes facing north or northeast are super appealing. Even if your home isn’t ideally oriented, strategically placed skylights and light-coloured interiors can create a bright, air-y feel.
Boost Storage Space
Buyers love good storage, so maximize it wherever you can. Think built-in closets, shelving units, and kitchen pantry organizers. Show off your home’s organizational potential by making the most of available space. Efficient design is key. Avoid awkward furniture placements in expansive living and dining areas. Aim for functional, well-lit spaces that feel inviting. Bigger isn’t always better—focus on usability and smart design.
Create a Home Office
With more people working from home, a dedicated office space is a big plus. Design a functional, private study nook with enough room for dual screens and storage, plus a door for soundproofing. This can be a game-changer for buyers.
Decluttering and Depersonalizing
Think timeless, not trendy. Avoid flashy design trends that might not appeal to everyone. Keep your home neutral, classic, and traditional to retain its value and attract more buyers. Want to experiment with bold colours and textures? Do it through artwork, furniture, cushions, rugs, and light fittings that are easy to change.
Hire the Professionals
When it comes to renovating for resale, having the right real estate agent on your team can make all the difference. A savvy agent knows the Adelaide market inside out and can offer invaluable advice on what buyers are looking for right now. They can help you identify which renovations will give you the best return on investment and connect you with trusted professionals to ensure safe, up-to-code work.
Thinking about selling soon? Connect with us today to maximize your renovation investment and make your property shine in the Adelaide market!
