How HDB Flat Renovations Can Affect Sale Price
When it comes to renovation an HDB flat, many flat owners think that renovations can always help resale value. However, it is important to understand just what types of renovations will impact sale value positively and which that could actually harm the resale value. Here are 4 tips to help you choose renovations wisely when it comes to renovating your HDB flat.
1. Valuation
When it comes to the valuation for the flat, you should understand that renovations, regardless of the type may not have a big impact on the valuation. Valuation is different from the perceived value of the property as indicated by what your potential buyers are willing to pay for the properly. The valuation can be based on the direction that the property faces or distances from neighbourhood amenities. Most of these factors are out of the scope of a renovation, which is why renovations can not really affect the valuation of a property.
2. Cash Over Valuation
These days, the Cash Over Valuation system no longer exists. This means that sellers have less bargaining power when it comes to the amount that they might get for investing in a renovation. Therefore, renovations can go either way when it comes to getting more because of a renovation.
3. Renovations That Are Too Personalized
Renovations that are too specific to the homeowners personal taste can actually hurt resale values. This is because a significant number of potential buyers might not find the sellers personal tastes to be appealing. Therefore, while the seller may have invested a lot into making the home perfect for himself, the reality is that buyers are not finding the alterations appealing. In severe cases, this could actually cause the seller to lose money on the renovation when the HDB flat is finally sold.
4. Select Neutral Renovations
When it comes to renovations in general, try to opt for renovations that are neutral if your plan is to increase the sale value. Renovations that appeal to your personal tastes only are not likely to bring in a higher resale value when it is time to sell due to the fact that they may only appeal to certain types of sellers.
When it comes to renovations that will harm or help the resale value of your HDB flat, it is important that you get an estimate from a qualified real estate agent.
