As the saying goes, 'there's no place like home.' And as little flaws and neglected projects have become apparent during the past two years while spending more time in their homes, many have been bitten by the renovation bug. Families are keenly upgrading, repairing, and making their homes more comfortable.
What's more, the good news is that despite the pandemic's brief upheaval of the housing market, the current market promises an active and beneficial year for buyers and sellers.
Home Improvement Do’s and Don’ts
Many homeowners are considering home upgrades to increase the value of their properties. However, it's essential to plan renovations carefully and focus your efforts on where they will have the most impact.
Here are some tips for sellers to improve their profit margin:
You may have often heard this phrase, but what does it mean? Simply put, it means that you should not spend more money on upgrades than what you've already spent on the home. This amount includes what you paid for the house, plus interest and the cost of renovations.
Research current property values in your neighbourhood and surrounding area, and ensure that your upgrades are in sync with the value of these properties. For instance, you wouldn't want to add an extra floor to your home in an area accommodating mainly small family homes with two or three bedrooms.
Which improvements will increase your home's value?
Consider the trends and needs of the generation most likely to be in the housing market and place yourself in their shoes.
Additional space is an excellent starting place, especially with a more open floor plan and additional bedrooms. You could also consider adding a 'granny flat' to accommodate young adults still living at home or your older parents.
Older homes often lack enough bathrooms, so why not add one? This will go a long way in attracting potential buyers.
The kitchen is often the one aspect that makes or breaks a deal. However, beware of overspending and keep your return on investment firmly in mind.
Entertainment at home has probably come to stay, and adding an outside porch or deck from the lounge area will indeed be sought after.
Another area you'd be wise to invest in is security, which always takes precedence in South Africa.
Which Renovations Won’t Increase Property Value?
These are often luxurious and pricey big-item projects:
Fitting out the property with full solar capacity
Drilling a borehole and installing a pump
Adding a swimming pool
New windows and doors
It's always advised to use professional and experienced contractors and builders to ensure quality. Always request more than one quote and double-check your contractor's reputation.
Create a budget and control it unequivocally. Anything you didn't budget for in your estimate could throw you off budget; even regular small purchases could upset the financial balance.
You can join the majority and create an even more comfy zone for your family or step out and continue navigating the property market to reach your dream home goals.