Top 5 home renovation tips that pay off

Many homeowners are opting to renovate their home to accommodate their changing requirements or to fix it up before they sell with the hope that it will add to the market price of the property. While home improvement projects can really add to the appeal and practicality of a home, some will add more value onto the bottom line than others. 

Homeowners undertaking renovation projects cannot expect to splurge on expensive fittings and fixtures and recoup the value of the project when the house sells. Just because you spent R200 000 on home improvements does not mean that your house is worth R200 000 more. 

Factors such as the direction of the general housing market, the value of homes in the neighbourhood, the nature of the renovation project and how soon the home is sold after the improvement project is completed will have a bearing on how much of the renovation cost is recouped. 

The general rule is that the longer the homeowner stays in the home after undertaking renovations, the less likely they are to recoup its value. This is because different owners have different requirements and tastes differ too. What one homeowner finds appealing, another may not and style and fashion trends can change dramatically over a relatively short period of time.

Homeowners should always remember that having the fanciest house on the block is not necessarily going to mean it will sell for the highest price on the block. In fact, a house that is priced higher than its neighbouring homes could be perceived as overpriced even if it does have more value. One way to check the real market value of properties in your area, street or complex is to get an online property valuation report, which will give you information on what other similar homes have recently sold for. This way you can get a more accurate idea of what your property might be worth. 

Five top improvements that pay off more often than not: 

Because many buyers see the kitchen as the heart of the home, even a few basic improvements to this room can really pay off. Consider including energy efficient appliances, stainless steel, new countertops, a new sink, a coat of paint and new flooring. Cupboards can also be sanded, stained, painted or replaced if necessary. Where possible a classic design and neutral paint tones are best as these will appeal to a broader range of people. A well renovated kitchen can recoup between 70% and 80% of the remodelling cost when the home is sold. 

Kitchens and bathrooms are known to give the best boost in value, so these are the two areas of the home where renovation costs can be more readily recouped. In fact, you should make back between 65% and 75% of your costs of remodelling a full bathroom and around 65% of the cost of adding a full bathroom. Consider new fixtures including a bath tub, a double sink instead of a single one, recessed lighting, new flooring and wall tiles if necessary and a fresh coat of paint. 

As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. This option is also often significantly cheaper and less of a hassle than adding a completely new room to your home. 

With increases in electricity and a generally higher cost of living, utility bill savings are a big advantage, and so it stands to reason that shrewd energy-efficient improvements can add to the resale value of a home. Efficient windows and doors, a new roof and perhaps maybe even solar panels may be pricey to install, but around 65% to 76% of this cost could be recovered at resale. Security features are also always an important consideration in the home buying process, and many South African homeowners will appreciate a strong security system in a home.