We have customers that are wondering whether to sell their property and want to achieve the highest price when they decide to sell. The question lies for many homeowners should I invest time and money in a kitchen reno? Should I do a DIY Kitchen renovation.
Of course, there are many factors to consider such as money, time and of course disruption to the family home. At Kitchen Shack, we deal with homeowners and small builders and we know the return on investment from customers that have renovated prior to selling so here are a few tips to address a commonly asked question. This is especially true in any economic times always adding value when it comes time to sell.
Return on Investment
The most important thing to ask is “What is my goal when renovating the kitchen?”. This is easy if you are selling, your goal will be to reach the highest selling point and therefore it is important to remember your Return on Investment. Will a renovation add value to your sale price or will it make no difference?
Take a look at neighbouring properties in your area and assess the target market to evaluate what is important to them. If you do an evaluation on the surrounding properties and see that a renovated kitchen or laundry fetches a higher price than unrenovated then there is your answer.
Here’s an example of a renovated kitchen for a property sale in Fairfield. When auction day came around the renovated kitchen added enormous value to the final price and the customer was over the moon. The best part is that the Kitchen Shack kitchen didn’t cost a fortune and looked amazing! It is important to speak with a professional kitchen designer to assess your goals and particularly design to a budget.
Seek a Real Estate opinion
Remember to assess your decision from all angles. It would be helpful prior to listing your house for sale to speak with a Real Estate Agent who is experienced in your area. If the Real Estate Agent believes a kitchen renovation will definitely add value to your final sale price then it is easier to make the decision to renovate. If however, you need to sell quickly there may be little time to waste so it is important to speak with a Kitchen renovator to see how quickly they can supply the kitchen and availability of installation. The ideal scenario is always to maximise your return i.e. the final sale price. A kitchen manufacturer based in Melbourne will always be able to supply quicker than interstate so keep this in mind.
The most important question to ask a Real Estate Agent is whether a kitchen renovation will increase the final sale value of your home or whether they just want to sell now. There is no need to spend money if, for instance, the Real Estate Agent believes your site will be a “developer opportunity” – be sure to drill down on the reasons.
Watch your spend
There is a big difference spending $25,000 compared to $10,000 on a kitchen renovation. If you have decided that it would be worthwhile to renovate your kitchen or laundry you need to shop around and find a quick, reasonably priced quality kitchen manufacturer. Remember the end goal is to achieve the highest price at sale but you don’t need to spend a fortune.
Keep in mind all prospective home buyers will want to imagine themselves in the heart of the home. If they can imagine themselves cooking and enjoying their time with family and friends they will fall in love and really want your home. It’s important to check out other homes in the area for sale so you know what you are competing against. It’s important not to overspend but also important to understand the standard in your area.
The key here is don’t spend more on your kitchen reno than your home value will fetch at the end of the day.
Here’s a recent kitchen renovation completed for a couple who are intending on selling their family home in Wheelers Hill. In fact, the couple commented that elsewhere when they compared this kitchen renovation it would have cost three times the price they paid so they are happy it only cost a fraction of the price but has increased their property value enormously from the old dated kitchen. Check out the before and afters here.
Will a Kitchen Reno assist in selling?
Talk to anyone and they will tell you a great looking kitchen sells homes. According to realestate.com.au surveys, 26% of Australians will prioritise a kitchen renovation over any other type of renovation prior to selling.
As the kitchen is the heart and soul of a home there is no doubt an amazing kitchen will produce an amazing result. People fall in love with kitchens and with people having less time in their busy lives, a fully renovated kitchen will be more attractive to buyers as they won’t be faced with a major renovation in the future.
What is key here is the design so that it will appeal to the target.
Who is the buyer?
Understand who is the buyer. A kitchen renovation to meet your needs may not be the end buyer’s needs. Remember to keep in mind when working with a professional kitchen designer who the potential buyer will be. Keep your own personal preferences to a minimum and design a kitchen that will appeal to the target. For example, the most popular kitchen colour is white or off-white so you will be able to attract a larger buyer audience if you eliminate trendy colours. Neutral colours will always appeal to a larger demographic.
Consider whether your area is a “family-orientated” or “couple” area and complete a kitchen renovation to appeal to both. Maybe integrating a kitchen island bench where the family can gather or friends can entertain will attract a greater number of buyers.
How to choose the Style
The flow or style through the whole house is a key ingredient for buyers. If for example, you are selling a traditional period style home, it is important to renovate with a traditional style kitchen. For example, with a period home, a shaker style would be perfect whereas with a modern home the ultra style is a better match.
Know your style and embrace it in all aspects of your home whether it’s your kitchen renovation or simple styling throughout the home.
Most importantly, to avoid making expensive mistakes consult a professional kitchen designer who will be happy to work through all these issues and not charge a fortune. So after you have researched and decided on the best way forward talk to us to capitalise on your investment.