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3 Things You Need to Consider When Renovating to Resell

Updated: Jun 30, 2023


 

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Builder laying out timber flooring in a room

If you are considering renovating to resell your home, there are a few things to consider before grabbing the sledgehammer and knocking down walls. In the current market with high-interest rates and increasing living costs, you need to be sure that the money, time, and effort are worth the investment.


These are our top tips to think about:

Birds-eye view of a suburb

1. Your Neighbourhood


If the median house price for the houses in your neighbourhood is $700,000, spending $600,000 on a renovation is not likely to get you a return on your investment. There is a cap that people are likely to pay, so you would do well to find out the median house price for your area and then work out the budget for your reno accordingly. This will help you determine what is best for resale value or is not worth it.


Oneroof.co.nz is a helpful site for finding this information or talking to a local real estate agent. For renovation budget tips, go here.


A room with a grey bed, a rug, hanging lights, plants and a picture on the wall

2. Taste

If you are renovating with the purpose of selling, you might want to give the idea of a bright yellow kitchen a miss. Sticking with a style and colours that have broad appeal is best. When choosing colours, start with the floor and work your way up. Neutral tones are best for potential buyers to envision making their mark on your home.


Stack of documents with cash coming out of it

3. Cost


Building costs have increased dramatically in the past 12 months due to a lack of builders and supply shortages. In the September quarter, house building costs were up 13.6% higher than the year before!


The three materials that have increased in price the most are timber, metal and concrete products, so it would pay to keep this in mind when planning your renovation. A good builder can give helpful suggestions on this.


Remember that more is not necessarily better when it comes to renovations. You don’t need to replace your entire kitchen (unless it is in bad shape!). Sometimes just replacing the flooring or the backsplash and pendants with something more modern can make all the difference. For more helpful kitchen reno tips, go here.


Focusing on repairs such as dripping taps, rusty gutters and replacing missing tiles and squeaky doors may not be at the top of your reno to-do list, but evidence that a house is well maintained is one of the best-selling points.


It would pay to get the advice of a professional to guide your renovation plans. A licenced builder or real estate agent can be worth their weight in gold for advice on the best return on your investment. Wellington builders Orkney Group Ltd would be happy to discuss your renovation project. Contact us on 0800 368 470.


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