Weighing the cost

Find out what buyers are looking for
Before you start any pre-sale renovation work, ask real estate agents for an appraisal of the property's market value or get a valuation done.
This will roughly indicate the top possible price the property could fetch, and help determine whether any work is worth it. The area the house is in determines its ceiling price - the amount that the house will not sell above.
If the nicest houses locally are selling for $400,000, and you bought yours for $350,000, it's probably not worth spending more than about $20,000 doing it up. Valuers and real estate agents will be able to provide information on what work will add the most value.
Think about the emotional cost of doing renovations, as well. Don't aim just to recoup the money spent, unless it's likely your house would not sell without the work. You need to have at least a chance of making enough of a profit to cover the stress and hardship of living in a building site for weeks or months.
Before you begin, get someone in to help you look at the house objectively. A friend should be able to see things that buyers will notice. Work on aspects that make an impact and focus on making changes that buyers will not be able to imagine.
Renovate with a potential purchaser in mind. Find out from local real estate offices what kind of properties are selling well in your area. If it's popular with young families, buyers may not be won over by elegant entertaining areas, but may be impressed by a well-designed garden with lots of usable lawn space.
James and Rebecca Melton said putting themselves in the buyer's shoes helped them when they were thinking about selling their first home. "After a few weeks of going to lots of open homes in our area, we found what was appealing to the market and what we needed to do to our house to get the value up to the upper price bracket. We discovered that even though we were a young couple, the rest of the area was families ... so we decided to make it appeal to them."
Get a designer's help
If you're planning on spending more than a couple of thousand on renovation work, ask a designer for help. Most should be able to pay for themselves by creating plans that add more value to the house than they cost to implement. They should also know of some tips and tricks to cut costs and quickly add impact. If you're not renovating on a big budget, have a look through some interior design magazines so you get an idea of what is fashionable.
Don't forget the outside of the house - if no one wants to come through the front door, it's a waste. Make sure the house is appealing from the street. Check that the front gate and letterbox are in good condition, and give the exterior of the house some paint if it's needed.
Just refreshing the trim can make a big difference, and is cheaper than painting the entire house. Keep any bins out of sight, clear clutter on the path to the front door and pave or reseed areas where grass is patchy.
The aspects of a house most likely to capture buyers' attention are bathrooms, the kitchen, entertaining areas and landscaped garden spaces. The biggest cost in renovation usually comes in work on the bathroom and kitchen but there are ways to keep it down. Avoid ripping out and replacing either room - work with what's there unless it's structurally unsound.
There are companies around that will resurface benchtops and other surfaces, making a kitchen or bathroom look brand new for a fraction of the cost of a regular renovation. Check out Colour My Kitchen, Chameleon Kitchens or Just Resurface. In the bathroom, replacing tiles, toilet, the vanity and shower curtain, if there is one, can make a big difference to the look.
For both rooms, try to keep cabinetry and walls a neutral colour, and add interest with accessories.
In the kitchen, install a bright splashback in a bold colour - Perspex is cheap for this.
For the bathroom, replace the accessories, such as the toilet-roll holder and the mirror.
A big, frameless mirror can make a bathroom seem much larger.
Don't underestimate the power of good paintwork.
If the walls are in good condition, you may be able to get away with just one coat of paint, but even with sealing and a couple of coats, most houses can be painted for under $500 if you're prepared to do it yourself.
Ask paint consultants what the most popular colours are.
Opt for light, neutral colours - choose dark or bright colours only if you're really sure about the effect.
Repaint dated feature walls to make rooms seem bigger.
Pay attention to the garden but don't go to lots of effort to make it look amazing if it will come with a big workload - the vast majority of buyers are not avid gardeners.
If there is a garden on both sides of the house, work on the street side first.
Don't do any work that will result in a reduction of light inside. If possible, add lighting or install mirrors to make the most of what is there.
Be careful about getting rid of character aspects and make sure any renovation work is done in keeping with the style of the house, especially if it's a villa or an early 20th-century bungalow.
Think about the best use of space: If you have a huge laundry but not enough bedrooms, consider moving the washing machine to the garage and making the laundry into a spare room.
Fix your house's problems
Any renovation work should be designed to fix "problems" with the house that could potentially put buyers off. Pre-sale renovation work should never create issues. If the kitchen could be newer but is clean, crisp and tidy, it's unlikely to deter any purchasers.
But if your taste is for fully carpeted bathrooms and bright orange feature walls, even new work could create hurdles. Keep most of your renovation work neutral and fairly unobtrusive, unless you are very sure of it.
Work that is carried out to your taste should be done when you are going to spend several more years in a house - not when you are renovating to get top dollar from it.
Aim to renovate for the least cost, the most impact, and to appeal to the widest range of buyers possible.