How to increase the value of your home
As you know, property is already a costly asset, often the most expensive purchase someone makes in their life – it’s something we all need, so the cost is largely justified.
Homeowners therefore want to get the best possible price when selling their home, but many do not make the changes necessary to improve the value of their property.
It is essential that homeowners maximize the potential value of the property before putting it on the market, and although you will be faced with the initial cost of making such improvements, the return on investment will certainly exceed this cost. Below are some ways in which to get more for your sale.
Making additions to your home
Homeowners can add value to a house by adding an en-suite bathroom where possible. With the average cost of converting existing space and adding this at an average cost of £2,000, the value of your home increase roughly £5,000. Of course, this is space permitting, but if the option to convert ‘empty space’ into an en-suite is there, it should be taken.
Another addition to your home that will add real value is with the addition of a fireplace. An open fireplace could add as much as £3,000 to the asking price, which is double that of the expected installation cost. Of course, always pay extra to go with a reputable installer for safety.
Looking grander, those with more disposable and a loft should consider a conversion into an additional room. Whilst this will of course set you back more than the aforementioned additions, the value of your house could rise by as much as £50,000 depending on the size of the house and the area.
Demand and location are key
Of course, and something that has been the case for as long as the housing market has existed, demand and location will continue to underpin the overall success of the sale of your property.
It is important you analyze the market, identifying whether house prices are growing or stagnating in your area. Whilst areas in London are seeing slowed growth, looking at cities in the North such as Liverpool and Manchester, we are seeing significant growth.
You also need to consider the buyer demographic that you are targeting. If you are selling a flat, for instance, you have a greater chance of selling to a younger person or persons. Being located near transport links and having entertainment for this demographic, i.e. being located in a city, will increase the demand thus price for your property.
On the contrary, if your property is not ideally located for a younger market and is generally quieter, you may need to adjust your approach and expectations to that target market.
Using an estate agent
Using a reputable estate agent may help in identifying the demographic and getting the most out of your money. Agents can suggest the improvements and renovations to best increase the value of your home on a case by case basis.
Finding the right asking price is a challenge for many and a significant decision when listing your property. You may find the property is attracting no interest (or a lot of interest) and this is probably down to setting the wrong asking price. An agent will have expert knowledge of the local area, helping you to set the right price.
Difficulties in the broader market
It is important to note that selling in the current market in a broader sense is difficult at the moment.
As you are probably well aware, the political situation surrounding the UK has been dominating media attention for the past few years. It appears we may be closing in on a date to leave the EU which, as you can imagine, is causing disruption in the market as well as the wider economy.
The uncertainty over the past few years has knocked seller confidence, with more people opting to make extensions to their property rather than selling. This is largely due to reforms by Government making it possible to add a floor to your home without planning permission.
In the short term, and by this we mean the coming few months, we may see an upsurge in activity through people waiting to take action as we leave the EU. However, experts predict that this is not expected to last, with much of the same expected in the property market. If you have a choice, add to your home and don’t sell in the market unless you need to.