Close this search box.
Close this search box.
Close this search box.

Who pays for the renovations on selling houses Australia?

11 April 2024

Table of Contents

Meet Sahara, a homeowner in Sydney, Australia, who decided to put her house on the market. Excited about the prospect of a new chapter in her life, Sahara envisions selling her home for a handsome profit.

But the house Sahara loves isn’t loved by Buyer.

Why? Sahara’s house needed a makeover. As she assessed her property, she realised that a few upgrades and renovations were necessary to attract potential buyers and maximise her selling price.

Similarly, as a homeowner looking to sell, increasing your property’s value is likely a top priority. However, one inevitable expense that often arises is a renovation, which is crucial for increasing the property’s value.

Sahara knew that renovations could significantly enhance her home’s appeal and value, but she was unsure who would pay the bill. The seller herself or the future buyer. 

Let’s delve deeper into this and uncover its considerations and implications for both sellers and buyers in the real estate market, especially during the home selling process.

Who Pays for Renovations When Selling a House in Australia?

Sahara’s real estate agent told her, “Homeowners typically cover the cost of renovations on selling houses in Australia. Investing in renovations can substantially raise the selling price and attract a larger pool of potential buyers.”

But as she looked around her home, she couldn’t help but see it from the buyer’s perspective as well.

Here are both side perspectives that Sahar considered:

Seller’s Perspective:

  1. Investment Return: For sellers, renovations are an investment in increasing the value of their property. They believe that by investing in renovations, they can potentially attract more buyers and sell the house at a higher price, thus yielding a better return on investment.
  2. Competitive Advantage: Renovations can give the seller’s property a competitive edge in the market. They may see renovations as a way to differentiate their house from others in the area and attract buyers who are looking for modern, updated homes.
  3. Control Over Design: Sellers have the autonomy to choose the type of renovations they want to undertake and can tailor them to their preferences and budget. They see renovations as an opportunity to customise their home to their liking before putting it up for sale.

Don't Settle for Less—Build Excellence with Dhursan

Buyer’s Perspective:

  1. Move-In Ready: Buyers often prefer properties that require minimal renovation work, as they want to move into their new home without having to undertake major renovations immediately. They prioritise homes that are already updated and in good condition, saving them time, effort, and potentially additional expenses.
  2. Cost Consideration: Prospective buyers may be hesitant to pay a higher price for a property that has undergone extensive renovations, especially if they feel that the renovations do not align with their preferences or if they perceive the cost to be inflated. They may prefer to buy a cheaper property and renovate it themselves according to their taste and budget.
  3. Risk Management: Some buyers may be wary of properties with extensive renovations, as they may be concerned about the quality of the workmanship or potential hidden issues. They may prefer to avoid properties with too many renovations and instead opt for homes that require minor cosmetic updates that they can oversee themselves.

After much deliberation, Sahara made a decision that surprised even herself. Despite the financial implications, she chose to pay for renovations by selling a house, but she was also mindful of her budget.

She knew that every dollar spent on renovations needed to be carefully managed to ensure that her expenses didn’t spiral out of control.

What Renovations are most likely to Increase the Value of a House?

Before starting the renovation, Sahar knew that not all renovations were created equal, and she needed to choose wisely if she wanted to maximise her investment. She chose the most popular renovations that are the factors of price increase, such as:

Kitchen renovations

A new kitchen is one of the most popular renovations that can increase a house’s value. A well-designed kitchen with modern appliances and updated cabinets, countertops, flooring, and more can make your home more appealing to potential buyers, significantly enhance its appeal and saleability, and get a higher sale price.

Bathroom renovations

Similar to kitchens, bathrooms are essential spaces in a home that buyers pay close attention to. A new bathroom with modern fixtures, stylish tiles, and a sleek vanity can transform a mundane space into a luxurious retreat. Buyers are frequently prepared to spend more for a property with updated bathrooms that offer both practicality and aesthetics.

Outdoor living expenses

Adding a patio or deck to your house increases its usable space and offers a place to unwind and entertain. An outdoor kitchen, patio, or deck can greatly enhance the value and charm of your property. Homes with well-planned outdoor areas are more appealing to buyers because they allow them to host guests and enjoy the fresh air.


Painting may seem like a simple renovation, but it can have a big impact on the overall look and feel of your property. A fresh coat of paint can instantly refresh the appearance of your home, making it look cleaner, brighter, and more inviting to potential buyers. It’s a relatively inexpensive way to update the property and make it stand out in the competitive property market.


First impressions matter, and a well-maintained lawn, neatly trimmed bushes, and colourful flower beds can create an inviting exterior that catches the eye of potential buyers. Landscaping not only improves the appearance of your property but also adds value by creating a welcoming atmosphere that sets the stage for a positive viewing experience.

Room additions

Adding a new room to your house can be an excellent way to boost the value of your property. Whether it’s a new bedroom, bathroom, or family room, a new addition can provide more space and comfort to your home. Not only does it increase your living space, but it can also help to raise the resale value of your property.

As she sifted through renovation estimates, Sahara’s mind buzzed with questions…

How much does it cost for renovations?

Sahara discovered that a major renovation of an average house could cost anywhere between $63,000 to $72,000. The renovation costs could fluctuate based on materials, labour, unforeseen expenses, and the unique requirements of her project.

According to her research, experts recommended that the amount spent on renovations should not surpass 10% to 15% of the current market value of her home. This provided Sahara with a clear guideline to help her make informed decisions about her renovation budget.

As Sahara sifted through the renovation estimates, doubts gnawed at her. “I don’t have enough money,” she whispered to herself.

She couldn’t help but wonder……

How can I get help paying for renovations?

But instead of losing hope, Sahara began to explore her options for financing her renovation dreams. The options are:

Home equity loans

The first option to consider was home equity loans. These loans, secured by the equity in her home, allowed Sahara to borrow against its value to fund renovations. With her home serving as collateral, Sahara saw this as a viable option to access the funds needed for her project.

Transform Your Vision into Reality with Dhursan Construction

Personal loans

Another possibility was personal loans. While not backed by any collateral, personal loans provided a more accessible route for financing renovations, especially for those without substantial home equity. Though typically more expensive than home equity loans, they offered flexibility and convenience in accessing funds.

Government grants

And then there were government grants – a beacon of hope for those in need of financial assistance. These grants, tailored for low-income families and individuals with disabilities, offered a lifeline for those struggling to cover the costs of renovations. With careful research and diligence, Sahara explored the potential eligibility for such grants to support her renovation endeavours.

Wrapping Up

Renovations can be a great way to increase the value of your home and make it more appealing to potential buyers.

Like Sahara, it is important to carefully consider the cost of renovations before starting the project. You should also have a realistic estimate of the time it will take to complete the renovations.

And remember, if you’re considering building a new home after selling, we’re here to guide you through every step of the process. We specialise in building exceptional new and innovative homes in Sydney tailored to your unique vision and lifestyle. Contact us today.

Ready to Build Knockdown with us?
Work with the experienced team at Dhursan Construction



Related Posts

Enquiry For Who pays for the renovations on selling houses Australia?

One of our agents will contact you soon!

Blank Form (#6)

Enquiry For Who pays for the renovations on selling houses Australia?

One of our agents will contact you soon!

Contact Us Form