How To Increase Property Value When Selling

It is common knowledge that not all renovations are created equal, some projects offer a far better bang for your buck than others. Knowing what will and what won’t add value is the key to a successful renovate-to-sell project. To boost your property’s appeal and its market price, we have put together this handy guide on the renovation projects that offer the best return on investment (ROI) in a New Zealand context.

Understanding Renovation ROIs

Before we dive into reno project ideas, we need to get a better understanding of what getting the best “ROI” truly means. In a nutshell, it can be described simply as adding value that exceeds the cost of the renovation. Or in other words, a renovation where the increase in your property’s sale price is significantly greater than the money you paid for the upgrades.

5 Common Factors That Influence ROIs

1. Market Demand. What buyers in your specific area (for example, Bishopdale, Christchurch) are currently looking for? For instance, apartments, 3 bedrooms, 4 bedrooms, separate laundry, office etc.
2. Property Type. A renovation that suits a modern townhouse might not suit a classic old villa, similarly, a rural home versus a city reno will have a different focus.
3. Quality of Work. Poor workmanship decreases the perceived value of any renovation instantly. Home buyers not only see shoddy workmanship, but they are also prone to thinking, “Is the rest of the property not taken care of either?” or “What else has been completed poorly?”
4. Over-Capitalisation. Spending too much on the renovation, pushing your property’s value too far beyond similar homes in your neighbourhood. If your home’s value is too high for the neighbourhood, buyers are likely to compare it to what else they could get for that same money elsewhere.
5. Existing Condition. Sometimes, your property may not need much more than a simple facelift, often just bringing it up to a fresh and tidy standard offers a better ROI than extensive upgrades.

What Renovations Can Increase A Property’s Value?

Ok, let’s get down to it and explore the renovation projects consistently cited as offering the highest returns in the New Zealand property market.

1. Kitchen Upgrades

Arguably, the most popular renovation overall, the kitchen isn’t referred to as the heart of the home for nothing! Often the first room buyers head to when entering a home for sale, your kitchen can be an instant deal-breaker, especially if it’s outdated or dysfunctional.

Why are kitchens important? Because they are central to daily life, the average person spends a surprisingly significant amount of time in the kitchen. A modern, functional, and aesthetically pleasing kitchen signals a well-maintained and desirable home.

High ROI Kitchen Reno Strategies

• Strategic Refreshes: You don’t always need to rip everything out and start over, sometimes new benchtops, replacing old or discoloured tiles, new cabinetry doors, updated tapware, or the addition of shiny new modern appliances can transform a kitchen for a fraction of the cost of a full reno.
• Open-Plan Integration: Open-plan living is a highly sought-after feature in most New Zealand homes. If it is doable, opening the kitchen to the living or dining area can dramatically improve flow and perceive space of older homes with a more disconnected floor plan that was popular in the 70s.
• Smart Storage Solutions: Pull-out storage, clever corner units, cavity sliding cabinetry and other integrated features that encourage ease of use demonstrate thoughtful design and practicality, increasing the overall appeal of the property.
• Quality Appliances: Investing in high-end, energy-efficient appliances (oven, hob, dishwasher) can significantly boost buyer confidence and appeal. Stainless steel or integrated appliances offer a more modern and contemporary look.

2. Bathroom Revamps

The second most popular reno when looking to sell your property for its best price is the bathrooms. For this one, what you are aiming for is a clean, modern, and functional look, a refreshed bathroom can significantly improve the appeal of any property.

Why are bathroom renos important?Much like kitchens, bathrooms are high-traffic, functional spaces that are used every day. They need to be presented at their best to avoid putting people off – no one wants to see evidence of mould, water damage or lack of care as this indicates potential repair costs.

High ROI Bathroom Reno Strategies

• Focus On Fixtures And Finishes: Replacing old vanities, toilets, showers, and tapware can make a huge difference. Opt for contemporary, neutral colours and durable materials.
• Excellent Ventilation: An important one for New Zealand bathrooms – ventilation in the bathroom is a no-brainer. Investing in good extraction fans works to prevent mould and dampness issues that can deter buyers and lead to costly future repairs. Ensure your fan is adequately sized for the room and vented to the exterior, not into the roof cavity.
• Underfloor Heating: Underfloor heating in a bathroom (especially in colder regions like Canterbury) offers a touch of luxury that can sway some buyers, plus it is relatively inexpensive to install during a planned renovation.
• Maximising Space: By design, bathrooms can be a bit tight on space, which is why working to create the illusion of more space is of immense value. A well thought out floor plan will help, as do wall-hung vanities, toilets and well-placed mirrors. Creating the illusion of more space makes smaller bathrooms feel larger and more open and therefore more appealing to buyers.
• Regrouting And Resealing: This is a big one for anyone who has a tile shower or bathroom space. If the layout and fixtures are still good, sometimes a thorough clean, regrouting tiles, and resealing silicone can make an old bathroom look almost new.

3. Adding A Bedroom Or Bathroom

If possible within the current property layout, converting/adding an extra bedroom or bathroom to the design can significantly increase it’s value, especially if it brings your home into a more desirable bracket (for example, a 3-bed to a 4-bed, or 1 bath to 2 bath). Always consult with an architect or builder early on in this process to assess feasibility, cost, and compliance requirements before proceeding.

Why are additional rooms important? More bedrooms open up a much wider appeal for all kings of buyers, especially families and flatters. An extra bathroom (particularly an ensuite) adds convenience and a touch of luxury too.

High ROI Room Strategies

• Convert Underutilised Spaces: Look at large living areas, extra-large bedrooms, garages, storage cupboards and hallways for extra space that could be reworked. Ensure any conversion meets council regulations and building codes.
• Add An Ensuite: If you have a large master bedroom, adding an ensuite can be a game-changer.
• Consider A Separate Toilet: Often overlooked, adding a separate toilet (even a small one) can be a cost-effective way to add significant value and convenience, especially for homes with only one bathroom.

4. Enhancing Kerb Appeal

The exterior of your home is the first thing buyers see, so it makes sense that you want this area looking great in order to present a positive and inviting first impression. A well-maintained and attractive exterior can significantly influence a buyer’s initial perception, setting the tone for the entire property viewing.

Why is kerb appal important? People often judge a book by its cover. A neglected exterior can signal neglect inside (even if the interior is in good condition). In contrast, a well-presented exterior can impress buyers, giving off vibes before they have even entered the property.

High ROI Kerb Appeal Strategies

• Fresh Paint Or Exterior Wash: A clean, well maintained exterior is very important. A fresh coat of paint can work wonders on the fence or the home’s exterior, or simply a thorough pressure wash can remove grim and refresh tired surfaces.
• Landscaping And Garden Tidy-Up: Think low-maintenance landscaping like weed removal, fresh bark, hedge trimming and adding or replacing plants. Focus on creating inviting pathways and clear sightlines towards the entryway.
• Boundary Fencing And Gates: Tidy, well-maintained boundary fencing provides privacy and security, adding to a property’s perceived value. Look at adding a fresh coat of paint or stain to existing fences or putting up new fences where necessary (families with young children prefer fully fenced properties).
• Lighting: Exterior lighting (path lights, feature lighting for trees, security lights) is a quick and straightforward way to enhance your property’s kerb appeal, plus there is also value in safety and usability, particularly for evening viewings.

5. Prioritising Insulation, Heating And Cooling

In New Zealand, particularly in areas with colder winters like Canterbury, a warm, dry and healthy home is a significant selling point. Buyers are increasingly aware of the health benefits and lower running costs associated with well-insulated properties.

Why is heating and cooling important?Because they meet fundamental buyer needs for comfort and health, plus they reduce energy bills, and align with current building standards and healthy homes initiatives.

High ROI Heating And Cooling Strategies

• Top-Up Ceiling And Underfloor Insulation: Topping up your existing insulation is a relatively inexpensive project with immediate benefits in comfort and energy savings, which translates to one less job the buyer has to do!
• Quality Heat Pumps: Heat pumps have come a long way since the original models. Installing additional or brand new more efficient heat pumps in living areas and potentially bedrooms provides market ready effective heating and cooling, appealing to all buyers.
• Ventilation Systems (DVS/HRV): These more complex systems work to improve air quality, reduce condensation, and create a healthier indoor environment. While not applicable in every situation, they are a strong selling point for health-conscious buyers and those concerned about dampness.

6. Enhancing Built-In Storage Solutions

Modern living often means more “stuff”, whether it’s a coffee machine, an air fryer, or just making room for all the toys. Buyers are increasingly looking for homes with well-organised storage, making this a highly practical renovation that can make a big difference for many buyers.

Why is adding storage important? Because it addresses a common pain point for many homeowners, especially families, and it also makes spaces feel less cluttered, as you can hide all of your stuff!

High ROI Storage Strategies

• Built-In Wardrobes: Built-in wardrobes add instant appeal and functionality along with a clean and simple aesthetic.
• Utility Storage: Creating dedicated spaces for cleaning supplies and other household items keeps these items out of sight and stored safely.
• Garage Organisation Systems: Shelving, wall-mounted storage, and even a dedicated workbench can transform a garage from a dumping ground into a highly functional space.

7. Upgrading Electrical And Data Infrastructure

While not visually exciting, ensuring your home’s electrical system is safe, modern and capable of handling today’s tech demands can be a significant selling point.

Why is electrical work important? Because it addresses safety concerns and provides added convenience, future-proofing the home for today’s smart technology needs.

High ROI Infrastructure Strategies

• Additional Power Points: Adding extra power points, especially with integrated USB charging ports in bedrooms, living areas, and kitchens, is a small detail that makes a big difference to modern buyers.
• Fibre Optic Connection: Ensuring your property is connected to fibre broadband, if available in your area, is a must these days as this is high on the list for many buyers.
• Outdoor Power Points: Convenient for outdoor lighting, tools or entertaining,.

8. Focus On Healthy Homes Standards

New Zealand has increasingly stringent Healthy Homes Standards, particularly for rental properties, and these standards are also forming a benchmark for all buyers. Meeting or exceeding these standards can significantly boost your property’s value and appeal.

Why do healthy homes matter? Because they better guarantee a warm, dry, and safe living environment, reducing long-term maintenance issues and appealing to a broad range of buyers seeking value for money.

High ROI Healthy Home Strategies

• Moisture Control: Ensure all bathrooms and kitchens have extractor fans installed and there is adequate drainage around the property, making sure there are no leaks or signs of dampness or mould.
• Heating: Install or replace adequate fixed heating sources in all main living areas (and even bedrooms, if feasible).
• Ventilation: Ensure adequate ventilation in kitchens and bathrooms (as mentioned above) for good overall airflow and extraction.
• Insulation: Meet or exceed current insulation requirements as laid out by the NZ Building Code requirements for ceilings, floors and walls.
• Draught Stopping: Seal obvious gaps and cracks, ensure doors and windows shut properly.

9. Improve Sound Proofing

In an increasingly noisy world, a quiet home is a very desirable home. While sound proofing is a fairly major task, it can be worth considering, especially if you are already moving walls, as it can significantly enhance living comfort and, consequently, value, especially in urban or high-traffic areas.

Why is soundproofing important? Although a largely unnoticed part of renovating, the inclusion of extra sound proofing can be just the tipping point needed for a buyer to choose your property over another similar one.

High ROI Soundproofing Strategies

• Double Glazing: This is a major investment buy it does offer excellent returns in terms of thermal efficiency and noise reduction.
• Solid Core Doors: Replacing hollow internal doors with solid core ones can dramatically reduce sound transfer between rooms, as well as providing additional insulation.
• Insulated Internal Walls: If undertaking a major renovation and altering or recladding walls, consider adding acoustic insulation to internal walls. You would be surprised at how valued this is, particularly between bedrooms and living areas, or between a home office and the rest of the house.

10. Adding A Secondary Dwelling

If your property has the space and zoning allows, adding a self-contained secondary dwelling or minor unit can provide significant rental income potential, which directly translates to increased property value. Always check zoning and local Council regulations to understand the specific rules in your area regarding secondary dwellings, setbacks, and services.

Why does adding a secondary dwelling help? If offers a tangible income stream or flexible living arrangements that appeals to investors and multi-generational families.

High ROI Secondary Dwelling Strategies

• Garage Conversions: If your garage is large enough and structurally sound, converting it into a small studio or one-bedroom unit can be a cost-effective option.
• Pre-Fabricated Units: Sometimes high-quality pre-fabricated units are a faster and potentially more affordable option that traditional builds, and they can usually be installed much faster.
• Separate Access: If you are converting the garage or adding a unit, always design it so there is private access.

The Renovation Mindset – Key Takeaways

Regardless of the renovation projects you choose, a strategic approach to home renovation is always your best bet, keep the following key takeaways in mind and you will be on the right track.

1. Research Your Market – Understand what buyers in your specific suburb or New Zealand region are looking for and what they’re willing to pay for. This includes looking into school zones and nearby facilities.
2. Don’t Over-Capitalise – Ensure your renovations align with the overall value of other properties in your neighbourhood. Pouring too much money into renovation could result in not covering the costs when the property is sold.
3. Focus On Quality Over Quantity – A few well-executed, high-quality renovations will always yield better returns that multiple shoddy ones.
4. Get Professional Advice – Consult with real estate agents and builders. Their expertise can save you money and ensure your renovations add genuine value.
5. Budget Realistically – Always add a contingency (at least 10 – 20%) for unexpected costs for any renovation project.
6. Consider The Long Term – Even if you’re not selling tomorrow, renovations that improve liveability, energy efficiency, and health will make your home more enjoyable and valuable in the long run.

By incorporating some of these high-ROI renovation projects, you can transform your property from ordinary to elevated, setting you up for maximum success in a competitive real estate market. Looking to sell your property and need some advice on what improvements will make the biggest difference to your sale price? Give Karen and Barry a call at Ray White Bishopdale today!