Does renovation increase the value of the property?
Hello there 😊
Sharing with you today on another topic which is playing on our mind when we are thinking of renovating our house.
Does renovation increase the value of the property?
Well, let’s check out the answers :
YES! Renovation enhances the value of the house by a big margin. In fact, a renovated house will trigger a lot of demand from the potential buyers. This is basically because people are more interested in beautiful and modern properties. Some buyers do not have the creative ideas in renovation therefore they prefer to find a house that is ready made following their concept. They also do not want the hassle in finding the right interior designers, contractors, painters etc.
The factors that make renovation matter are:
Buyer’s Experience And Intent
Current Median COV
Designer or Contractor
Prevailing Design Trends
Functionality of Renovations
Let us elaborate :
1. Buyer’s Preference
Comfort is the main focus. Having a beautiful house will be the next point so renovations can prompt them to pay more. As such, they may prize the cosmetic features of the property over its real value.
2. Market value of the house
However pretty your renovations look, the current median COV (Cash Over Valuation) will be the main determinant. The COV determines the amount paid for the property above the official valuation.
So before forking out for renovations, take look at COV prices in your area. If the median COV is low ($10,000 or under), then don’t expect to sell for a high price. If the median COV in the area is $10,000 or more, then paying for a $50,000 renovation or so, you will stand a better chance on selling the price you want.
3. Differences between Interior Designer or Contractor
Interior Designers and contractors seem similar, but they are not. Interior Designers are up to date on current trends, and prestigious design firms can lend branding to your property. Contractors are execution stage, hands-on people: They’re the ones who stick on the tiles and drill into the walls.
Since renovations are not cheap, it is best to fork out a bit more to get a recognized design firm. If the renovations are anything short of spectacular, they won’t justify your asking price.
4. Choosing the house concept
Make a WOW factor! Choose the house concept that you like but updated. Contemporary styles (all chrome and mirrors) can make a HDB flat resemble an upmarket condo. That’s why few showrooms use traditional design schemes to attract buyers.
5. Making the renovation practical
Functional renovations are the biggest contributor to COV. That is, renovations that do something besides look good. Local favourites are:
Walk-In Wardrobes
Wet Rooms
Kitchen Islands
Any sort of partitioning that allows the kitchen to double as a study room or TV room
Bar counter seats (sometimes attached to the kitchen island)
These renovations count for more than cosmetic features, such as materials used in tiling, or a ceiling motif.
After reading this article, please do not hesitate when you wish to renovate your house. It will be of a good use when you decide to sell in future!
