Renovating Before Selling: What’s Worth It and What’s Not?

When preparing to sell your home, one of the biggest decisions you’ll face is whether to renovate before putting it on the market. Renovations can enhance your home’s appeal and increase its market value, but they also require time, money, and careful planning. So, which renovations are worth the investment? And if you’re considering major renovations, is it worth getting planning permits? Let’s break it down.

Understanding the ROI of Renovations

Not all renovations add equal value to a property. Some improvements yield high returns, while others may not significantly boost your sale price. The key is to focus on changes that enhance your home’s appeal to potential buyers without overcapitalizing.

High-Return Renovations

1. Kitchen Upgrades
   • The kitchen is one of the most important rooms in a home, and small upgrades can make a big difference.
   • Consider replacing benchtops, updating cabinet doors, installing modern fixtures, and upgrading appliances.
   • Full kitchen renovations can be costly, but minor improvements (paint, new handles, splashbacks) often provide a high return.
2. Bathroom Refresh
   • A modern, clean bathroom is a major selling point.
   • Simple updates, such as re-grouting tiles, replacing taps, adding a new vanity, and updating the shower screen, can refresh the space without a full renovation.
   • If the bathroom is outdated, a complete renovation could add value, but it’s essential to consider costs versus potential returns.
3. Painting
   • A fresh coat of neutral-colored paint throughout the home is one of the most cost-effective ways to improve its appeal.
   • It makes the space feel clean, bright, and modern, attracting more buyers.
4. Flooring Improvements
   • Replacing old carpets or refinishing hardwood floors can give your home a polished, well-maintained look.
   • If you have outdated tiles or damaged flooring, consider replacing them with modern, cost-effective options.
5. Curb Appeal and Landscaping
   • First impressions matter, so investing in landscaping, tidying up the garden, painting the front door, and fixing pathways can improve buyer perception.
   • Adding new plants, outdoor lighting, and mulching garden beds can be low-cost yet impactful.
6. Lighting and Fixtures
   • Updating old light fixtures, door handles, and tapware can modernize a home instantly.
   • LED downlights, pendant lighting in kitchens, and stylish bathroom fixtures can make spaces feel more contemporary.

Renovations with Lower ROI

1. Luxury Upgrades
   • High-end renovations, such as premium stone benchtops, expensive imported tiles, or designer fittings, may not yield a significant return unless the property is in a luxury market.
2. Swimming Pools
   • While pools can be attractive for some buyers, they can deter others due to maintenance costs. They generally don’t offer a high return on investment.
3. Extensive Landscaping Projects
   • While curb appeal matters, large-scale landscaping overhauls may not provide a worthwhile return. Simple, well-maintained gardens usually suffice.
4. Solar Panels and Smart Home Tech
   • While these features are nice, they don’t necessarily add significant value at the time of sale. Buyers may appreciate them but might not be willing to pay a premium for them.

Are Big Renovations Worth It Before Selling?

Major renovations like adding an extra bedroom, knocking down walls for open-plan living, or extending living spaces can add value—but they also require significant investment and time.

When Large-Scale Renovations May Be Worth It

• If your home is significantly outdated compared to similar properties in the area, a renovation could help it compete better in the market.
• In high-demand locations, adding extra space (like an additional bedroom or bathroom) could increase the sale price significantly.
• If the property layout is impractical, reconfiguring spaces to improve functionality may attract more buyers.

When to Avoid Major Renovations

• If the market is slowing down or uncertain, it’s risky to undertake large renovations as you may not recoup the costs.
• If the property is already in decent condition, overcapitalizing on expensive upgrades may not yield additional profit.
• If your timeline is tight and you need to sell quickly, large renovations may not be practical.

Do You Need Planning Permits for Renovations?

If you’re considering significant renovations, you may need planning permits. Understanding when and why you need them is essential.

When Permits Are Required

• Structural Changes: Removing or altering load-bearing walls, building extensions, or adding new rooms generally require approval.
• New Plumbing or Electrical Work: Major modifications to plumbing or electrical systems may require permits.
• Heritage or Council-Zoned Areas: If your property is in a heritage zone or has specific council restrictions, you’ll need approval for most renovations.
• Outdoor Additions: Adding a deck, pergola, or granny flat may require planning permission, depending on local regulations.

When Permits May Not Be Required

• Cosmetic Upgrades: Painting, flooring replacement, kitchen or bathroom fixture updates, and other minor changes generally don’t require approval.
• Internal Layout Changes (Non-Structural): As long as walls aren’t load-bearing, minor reconfigurations may not need permits.

Should You Get Permits for Major Renovations?

• If selling quickly, major renovations requiring permits may not be worth the time and cost.
• If you plan to stay longer before selling, permitted renovations could add significant value and make the property more competitive.
• If you skip permits where required, it could lead to legal issues when selling, as buyers may request compliance certificates.

Alternatives to Renovations

If you want to enhance your home’s value without major renovations, consider:

• Professional Staging: A well-presented home can attract more buyers and higher offers.
• Deep Cleaning: A thorough clean, including carpets, windows, and outdoor areas, can make a property look fresh and well-maintained.
• Small DIY Improvements: Simple projects like updating cupboard handles, replacing old curtains, or pressure-washing outdoor spaces can create a big impact.

Renovating before selling can be a great strategy, but it’s essential to focus on improvements that provide the best return on investment. Minor upgrades like painting, flooring, and kitchen or bathroom refreshes often yield the best results. Major renovations can add value, but should be carefully assessed to avoid overcapitalization. If structural changes are involved, obtaining planning permits is crucial to avoid complications during the sale process. Ultimately, the goal is to enhance your home’s appeal while ensuring that every dollar spent translates into a better sale price.