HDB Flat Renovations: Help Your Resale Value
If you are
considering updating your HDB flat in order to increase its resale value, there
are a few things that you should know. Not all renovations are created equally,
meaning that some renovations will help the resale value of your flat while
others may just cost you time and money. Here are a 4 tips to help you decide
which renovations to make so that you can avoid costly pitfalls.
Valuation
Valuation is an important concept to understand because it has nothing to do with the perceived value that potential buyers may have of your flat. Valuations are based on factors such as the view from the flat, the previous transactions that have taken place and other factors that are not likely to be changed by a renovation. Therefore, in many cases, renovations actually do not help to increase the valuation of your property and sometimes may even cause the valuation to decrease.
Cash Over Valuation No Longer Available
As of this past year, the COV system has been eliminated so that it is no longer possible to receive an extra amount for your flat on top of the official valuation. This means that renovation jobs will no longer be able to benefit you in this way. You will now need to figure out a price directly with the buyer which means that the buyer may or may not be willing to pay for the renovation in the sale price.
Using Renovations to Cover Flaws
A big mistake that many flat owners make is in trying to use a renovation to cover up major flaws within the flat. Buyers care more about making sure that basic utilities such as the electricity and plumbing are in order before they will care about your renovations. If you are using renovations to cover up this issues, surely the buyer will find out and the renovation costs will not work out to put you in the black when it is time to sell.
Focusing on Design Trends
While it may be tempting to include the latest styles and appliances as part of your renovation, you must keep in mind that potential buyers may not hold the same views as you do on interior design. Therefore, if you want to make sure that you see a return on the renovations, opt for traditional or minimal designs that will likely appeal to a broad range of buyers.
