Renovation involves updating or improving existing spaces within your home, while an extension adds new rooms or areas to the original structure. Both are common ways to increase a property’s appeal and potential value, but they impact the selling process differently.
As of December 2025, in Melbourne’s Eastern Suburbs, we’re seeing buyers increasingly favour properties that offer move-in readiness. A well-executed renovation – updating kitchens and bathrooms, for example – can significantly enhance presentation and appeal to a wider range of buyers. Extensions, while adding space, require buyers to visualise the finished product and can sometimes lengthen the sales campaign. Currently in Melbourne, a completed extension generally adds more value than a planned one. However, incomplete or poorly executed renovations can detract from value. Sellers considering either option should be aware that preparation costs, such as painting (typically $400-$800 per room) and styling ($2,000-$8,000), are often factored into the overall selling expenses. Fletchers’ experience shows that properties with renovation potential, particularly in areas like Balwyn and Doncaster, still attract strong interest, but presentation is key. In 2026, we anticipate buyers will continue to prioritise properties that minimise the need for immediate work.
Understanding the distinction between renovation and extension is crucial when preparing your property for sale, as it influences buyer perception and ultimately, the achievable price.