How to Avoid Overcapitalising on Home Renovations
If you're thinking about putting your house on the market, you might consider making some home improvements to help boost your final sale price. While a few renovations around the home can be a great way to earn you more money in the long run, it's important to remember that not every change will see you reaping the rewards.
If you're considering updating your home, discover how you can increase its value without overcapitalising:
Give your property a facelift
While grand plans of adding an extension or carrying out large-scale home renovations might seem like a great way to increase the value of your home, the costs involved can sometimes leave you out of pocket in the long run. Instead, consider giving your property a more general facelift. Investing in smaller changes around the house can go a long way in increasing the universal appeal of your property. While they might not necessarily be cheap, smaller superficial changes are certainly more cost-effective than whole home renovations. Think about laying new carpet, giving your house a new lick of paint and updating any lighting fixtures that have become dated. Tidying up the garden or bringing in a landscaper to make your outdoor spaces more functional can also help to make your property more appealing.
Increase street appeal
Although we are taught that we shouldn't judge a book by its cover, sometimes it's the first impression of a property that matters most. Spending some money to increase your home's street appeal can be another simple way to add value. Consider freshening up the facade with a touch of paint, installing new awnings or updating any other features, such as fences, gates and tiling, that have seen better days.
Set a budget and stick to it
If you are thinking about renovating your home before you put it on the market, it's important that set a budget and stick to it. If you don't follow your budget, you could find yourself spending too much and being unable to recoup your expenses. Before you set a budget, do some research into whether renovations have made a sizeable difference to sale prices in the area around you and use that information to inform your decision. If the renovation of kitchens and bathrooms in your area significantly increases the sale price, it might be something worth investigating. If you find that it makes no real difference, your money could be better spent elsewhere.
Keeping these three tips in mind will ensure your home renovations add value to your property instead of leaving you out-of-pocket.
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