Renovation Mistakes That Actually Devalue Your Bass Coast Home

Leo Edwards • February 11, 2026

Here's what the data actually shows about renovations that devalue properties in our local market—including the critical compliance issues around owner builder work that many vendors don't discover until they try to sell.

When you're preparing to sell your Inverloch, Cape Paterson, or Wonthaggi property, it's tempting to think every renovation will add value. The reality? Some improvements can actively hurt your sale price and days on market—and some can even create legal compliance nightmares that derail your sale entirely.


After analysing hundreds of sales across the Bass Coast region and working with vendors who've learned this lesson the hard way, I've seen the same costly mistakes repeated. From swimming pools that buyers see as liabilities to DIY renovations that trigger building compliance requirements, these issues consistently reduce sale prices and extend time on market.



Here's what the data actually shows about renovations that devalue properties in our local market—including the critical compliance issues around owner builder work that many vendors don't discover until they try to sell.

The Swimming Pool Myth

Let's start with the big one: swimming pools.

In tropical Queensland or northern NSW, pools can be value-adds. In coastal Victoria, where we get maybe 60-70 genuinely warm days per year? They're often value-destroyers.


The Bass Coast reality:

  • Pools cost $50,000-$150,000+ to install
  • Annual maintenance runs $2,000-$3,000
  • Insurance premiums increase
  • Many buyers see them as a liability, not a feature


I've listed properties in Inverloch where the pool was specifically mentioned as a deterrent by multiple prospective buyers. Families worry about safety, retirees don't want the maintenance, and investors calculate the ongoing costs.


The exception? If you're in an established area where most comparable properties have pools, you might not lose value—but you're unlikely to recover the installation cost either.



What works instead: Quality outdoor entertaining areas with coastal-appropriate landscaping. Buyers want to enjoy our beaches and natural environment, not maintain a pool.

Over-Personalisation Kills Sale Prospects

Your taste is not everyone's taste. That's not an insult—it's market data.


Renovations that shrink your buyer pool:


Bold Paint Colours


That deep navy feature wall or burnt orange kitchen might look amazing in design magazines, but when a buyer walks through your Wonthaggi property imagining repainting the entire house, they're mentally deducting $5,000-$10,000 from your asking price.


I've seen this play out repeatedly in our market. Properties with neutral, contemporary colour schemes sell faster and for prices closer to their list price than identical properties with polarising colours.


Wallpaper


Yes, it's making a comeback in interior design circles. But in Bass Coast real estate sales? It's still a red flag.

Installation costs $800-$1,200 per room. Removal is time-consuming and messy. Most buyers factor wallpaper removal into their renovation budget, which means they're lowering their offer accordingly.


Themed Rooms



Your maritime-themed bathroom or vintage country kitchen reflects your personality. That's genuinely wonderful—for you. For buyers, it's a renovation project waiting to happen.

Properties that feel like a blank canvas—where buyers can imagine their own style—consistently outperform heavily personalised properties across Inverloch, Cape Paterson, and Wonthaggi.

Never Remove Bedrooms

This is non-negotiable in the Bass Coast market.


The numbers don't lie:


  • A three-bedroom home consistently sells for 10-15% less than a comparable four-bedroom
  • Combining bedrooms to create larger spaces or walk-in robes actively reduces property value
  • Room count is a fundamental component of property valuations


I've worked with vendors who converted four bedrooms to three to create a "master suite." When we ran the comparable sales data, we discovered they'd cost themselves $40,000-$60,000 in sale price.


Regional market context:


Our Bass Coast market serves families, tree-changers, holiday homeowners, and retirees. All of these buyer segments value bedroom count. Families need separate rooms for children. Holiday homeowners want to accommodate guests. Retirees often have visiting family.

Reducing bedroom count instantly shrinks your potential buyer pool.

Hand holding smartphone displaying an article about coastal real estate, with a man's photo.

The Garage Conversion Disaster

Converting garages into bedrooms, studios, or living spaces might seem like adding functional space. In practice, it's removing one of the most sought-after features in Bass Coast properties.


Why this fails locally:


  • Limited street parking in established Inverloch and Cape Paterson neighbourhoods
  • Wonthaggi buyers specifically search for properties with garages
  • Buyers need secure storage for boats, surfboards, fishing gear, bikes—we're a coastal community
  • Reconversion costs $10,000-$30,000



Unless you've obtained proper permits and added additional parking, garage conversions typically result in properties sitting longer on the market and selling below comparable homes with intact garages.

Removing Bathtubs: A Regional Mistake

Walk-in showers are stylish, accessible, and practical. But completely removing your only bathtub?


Bass Coast buyer concerns:


  • Families with young children need bathtubs
  • Many properties in our market are holiday homes where families stay
  • Older buyers often prefer at least one bathroom with a bathtub option
  • Rental properties without bathtubs can be harder to lease



If you have two bathrooms, one can be shower-only. But removing your only bathtub demonstrably reduces buyer appeal across our demographic mix.

The DIY Disaster Zone

I respect the DIY spirit. But poor-quality DIY renovations don't just fail to add value—they actively reduce it.


Common DIY problems in Bass Coast properties:


  • Uneven tiling
  • Poorly fitted cabinetry
  • Electrical work that doesn't meet code
  • Plumbing that "mostly works"
  • Incorrectly installed fixtures


Professional buyers (investors, renovators) immediately spot DIY work and factor repair costs into their offers. First-home buyers often can't see the problems until a building inspection reveals them, at which point they either renegotiate or walk away.


The data from my listings:


Properties with professional renovations sell for an average of 8-12% more than comparable properties with visible DIY work. If you can't afford to hire licensed tradies, don't renovate those areas. Focus your money where professional results matter most: kitchens and bathrooms.

The Owner Builder Permit Trap

This is a critical issue I see regularly across the Bass Coast, and it's costing vendors thousands—sometimes tens of thousands—in lost sale price and unexpected compliance costs.


Many property owners don't realise they're considered "owner builders" under Victorian law, or they don't understand the legal obligations that come with that status when selling.


What makes you an owner builder?


If you've carried out building work on your property valued over $16,000 (including labour and materials) without engaging a registered builder, you're legally an owner builder. This includes:


  • Kitchen or bathroom renovations involving multiple trades
  • Deck construction or substantial repairs
  • Extensions or additions to the property
  • Converting garages, sheds, or other spaces
  • Structural alterations
  • Combined renovation projects completed as one job


The $16,000 threshold is calculated at trade rates—what it would cost if you'd hired professionals—not what you actually spent doing it yourself.


The Section 137B compliance requirement


Here's where it gets expensive and complicated. If you're selling a property where owner builder work was completed within the last 6.5 years (from occupancy permit or certificate of final inspection), you must provide:


  1. A Section 137B defects inspection report dated within 6 months of the sale contract, prepared by a registered building practitioner
  2. Domestic building insurance for works over $16,000 (6 years for structural work, 2 years for non-structural)


The costs for Bass Coast vendors:


  • Defects inspection report: $550-$950+ depending on property size and complexity
  • Domestic building insurance: $800-$3,000+ depending on the scope and value of work
  • Rectification work for identified defects: Variable, potentially $5,000-$50,000+
  • Legal fees if issues arise: $2,000-$10,000+


What happens if you didn't get permits?


This is where properties become genuinely difficult to sell in the Inverloch, Cape Paterson, and Wonthaggi market.

If owner builder work was completed without proper building permits:


  • The Section 137B requirement still applies (for work completed in the last 10 years if no permit was issued)
  • Buyers' building inspections will identify unpermitted work
  • You may need retrospective permits, which can be difficult or impossible to obtain
  • Council compliance requirements can cost $20,000-$40,000+
  • Many buyers will simply walk away
  • Finance approval becomes complicated or impossible for buyers


Real Bass Coast examples I've encountered:


Case 1: Inverloch property with un-permitted deck addition. Vendor completed the work themselves 4 years prior.


At sale time:


  • Section 137B report identified non-compliant balustrade heights and inadequate footings
  • Council required retrospective permit application
  • Structural engineer reports required: $2,500
  • Deck reconstruction costs: $15,000
  • Sale delayed 6 months
  • Final sale price: $35,000 below market comparable


Case 2: Wonthaggi property with owner builder bathroom renovation. Vendor hired unlicensed tradies for the work.


  • Waterproofing didn't meet standards
  • Electrical work not certified
  • Domestic building insurance refused until rectification completed
  • Rectification costs: $18,000
  • Buyers renegotiated price down $25,000


Case 3: Cape Paterson property with garage conversion completed without permits 8 years prior.


  • Buyer's building inspection identified the conversion
  • No occupancy permit ever issued
  • Council enforcement action required
  • Work needed to be reversed or properly permitted
  • Initial buyers withdrew
  • Property eventually sold $50,000 below asking price


Why owner builder work devalues properties:


  1. Immediate red flags for experienced buyers: Investors and professional buyers automatically reduce offers when they see owner builder declarations
  2. Finance complications: Many lenders require additional documentation or refuse loans on properties with un-permitted work
  3. Insurance concerns: Buyers worry about their ability to insure properties with compliance issues
  4. Unknown quality: Even permitted owner builder work raises questions about construction quality
  5. Liability transfer: Buyers inherit any defects and compliance obligations


The Bass Coast market reality:


Our buyer demographic includes a high percentage of:


  • Melbourne-based purchasers using solicitors who scrutinise Section 32 documents carefully
  • Investors who immediately factor compliance costs into their offers
  • Retirees who want hassle-free properties
  • First-home buyers whose lenders are particularly cautious about un-permitted work


All of these buyer segments view owner builder work cautiously, which directly impacts your negotiating position and final sale price.


How to handle owner builder work before listing:


If you've completed owner builder work and plan to sell:


  1. Engage a registered building inspector early—at least 4-6 months before listing
  2. Obtain the Section 137B report and review identified defects
  3. Complete rectification work before listing, not during the sales process
  4. Secure domestic building insurance if required
  5. Gather all permits, plans, and compliance certificates
  6. Be transparent in marketing—hiding owner builder work creates legal liability


If you didn't obtain required permits:


  1. Consult a building surveyor about retrospective permit options
  2. Understand the compliance pathway before listing
  3. Factor compliance costs into your pricing expectations
  4. Consider completing compliance work before marketing
  5. Disclose everything to avoid legal action post-settlement


My recommendation:


Unless you're a qualified tradesperson, don't undertake significant renovation work yourself before selling. The Section 137B compliance process, insurance requirements, and buyer concerns consistently outweigh any money saved on labour.



If the work is already done, address compliance properly before listing. Properties sold with unresolved owner builder issues consistently achieve lower prices and take longer to sell across the Bass Coast market.

Over-Capitalising: The Hidden Value Killer

This is where vendors in Inverloch, Cape Paterson, and Wonthaggi make expensive mistakes.

Installing a $60,000 kitchen in a property where the surrounding comparable sales sit at $650,000-$750,000? You won't recover that investment.


How to avoid over-capitalisation:


  1. Research recent sales of renovated properties in your immediate area
  2. Calculate the price difference between renovated and unrenovated comparable sales
  3. Aim to spend 60-70% of that difference maximum
  4. Stay consistent with your neighbourhood's standard


If unrenovated three-bedroom homes in your Wonthaggi street sell for $550,000 and renovated equivalents sell for $650,000, your renovation budget should cap at approximately $60,000-$70,000.



Spending $120,000 to chase that $100,000 value increase is terrible mathematics.

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Eliminating Storage Equals Eliminating Value

Storage space—closets, pantries, built-in cupboards—is consistently ranked among the top buyer priorities in Australian property surveys.


Common storage mistakes:


  • Removing linen cupboards to create larger bathrooms
  • Eliminating hall storage for open-plan flow
  • Reducing pantry space for island benches
  • Removing built-in wardrobes



Bass Coast properties already face storage challenges compared to newer builds. Reducing existing storage capacity makes this worse and demonstrably reduces buyer appeal.

High-Maintenance Landscaping: The Ongoing Cost Problem

Elaborate gardens requiring constant attention don't appeal to the Bass Coast buyer demographic.


Why this matters locally:


  • Many properties are holiday homes—owners aren't local for weekly maintenance
  • Coastal conditions make high-maintenance plants difficult to sustain
  • Water restrictions and environmental consciousness matter to buyers
  • Maintenance costs factor into purchase decisions


What actually works:


Native coastal plantings that thrive in salt winds and sandy soils, established trees, low-maintenance gardens with mulch and hardy plants, drought-resistant landscaping.

Properties with sensible, coastal-appropriate landscaping consistently outperform properties with high-maintenance English-style gardens or water-intensive exotic plantings.

Blocking Natural Light: The Value Destroyer

This happens more than you'd think.


Common mistakes:


  • Adding rooms that block light to existing living spaces
  • Installing dark, heavy window treatments
  • Creating internal spaces without natural light sources
  • Over-planting that shadows windows



Natural light is a non-negotiable for Bass Coast buyers. Our lifestyle is built around coastal living, views, and connection to the outdoors. Properties that feel dark and enclosed sell for measurably less than bright, naturally lit properties—even when they're the same size and layout.

The Illegal Extension Problem

If you've added rooms or structures without permits, you haven't added value—you've created a significant sale impediment.


The costs:


  • Building compliance work: $20,000-$40,000+
  • Delays in settlement while work is completed
  • Potential buyers walking away entirely
  • Reduced sale price reflecting the compliance risk



Most serious buyers use building inspectors. Illegal work will be discovered. Address it before listing, not during the sales process.

What Actually Works in Bass Coast Real Estate

Instead of these value-destroying renovations, focus on improvements that consistently deliver returns in our local market—and always obtain proper permits and use licensed tradespeople:


High-return renovations for Inverloch, Cape Paterson, and Wonthaggi:


  • Modern kitchen with stone benchtops, quality appliances, and neutral finishes (60-80% ROI)—completed by licensed tradies with proper permits
  • Updated bathrooms with contemporary fixtures and fresh tiling—with certified plumbing and electrical work
  • Fresh neutral paint throughout
  • Quality flooring (polished timber, hybrid, or quality carpet)
  • Improved outdoor entertaining spaces suited to coastal living
  • Energy efficiency improvements (solar, insulation, LED lighting)
  • Maintained and enhanced existing structural features


Critical success factors:


  • Always use licensed, registered tradespeople for substantial work
  • Obtain building permits where required
  • Keep all compliance certificates and documentation
  • Stay within your suburb's price point expectations
  • Focus on broad buyer appeal, not personal taste

The Bottom Line: Data Beats Emotions

Every dollar you spend on renovations should be viewed as an investment with a measurable return. If a renovation won't recover at least 60-70% of its cost in increased sale price, it's not worth doing before listing.


My process with vendors:


  1. Analyse recent comparable sales data across the Bass Coast
  2. Identify the specific features driving premium sale prices
  3. Calculate realistic renovation budgets based on likely value increase
  4. Focus spending on high-return improvements only
  5. Avoid the common renovation mistakes outlined above



This data-driven approach is why my listings achieve 91.9% list-to-sale ratio and average 63 days on market versus the regional average of 115+ days.

Need Help With Your Bass Coast Property Strategy?

If you're considering renovations before selling your Inverloch, Cape Paterson, or Wonthaggi property, let's analyse the actual data for your specific situation.


I'll provide:


  • Recent comparable sales analysis for your area
  • Calculated ROI projections for any proposed renovations
  • Strategic recommendations based on current buyer behaviour
  • Honest advice about what will—and won't—add value



No generic real estate advice. Just data, market analysis, and strategies that work in the Bass Coast market.

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