What adds the most value to a home?
Many people believe that the only way to add value to a property is by making extensive renovations, or even remodelling entirely, which in itself can cost tens of thousands.
While adding an extra bedroom, or extending by a few metres can certainly see your home’s value increased quite significantly, this isn’t the only way to add a few extra £s to your potential asking price.
Because of the current climate of Brexit-related uncertainty, many homeowners are choosing to stay put and make improvements to their home in a bid to increase its value instead of selling up and moving on. In this post, to help you decide whether sprucing up or getting out is the best option for you, we detail the top 10 things that can add value to your home, both big projects that require quite a bit of work and some small additions that won’t break the bank.
Big budget improvements
Fix structural issues
This one may seem like a given, but many fail to prepare before putting their house on the market. Selling your home with structural issues could see potential buyers offer much less than your asking price, or significantly lower their offer once these issues are disclosed through the survey they will have carried out. This can cause you to achieve a much lower price than you might have imagined, as you may either have to concede significantly on price or have to foot the bill for making these fixes anyway in order to keep the interest of the prospective buyer.
Before putting your home on the market, ensure that your roof is in a good state, along with windows and doors too, as these are the elements that a new homeowner is unlikely to want to take care of themselves. This will add value to your home as its ‘ready-to-live-in’ appeal is increased and there will be fewer issues for the survey to inevitably uncover.
Even if it’s just a few loose tiles or some clogged guttering, this can be a red flag to a buyer as it can give the impression that further issues such as leaks are occurring. According to research by The Eco Experts, the average cost of a roof repair in the UK varies from £120 to £205 for a small number of roof tiles to be replaced, up to £1,956 to £3,125 to replace soffits and fascias, (of course, this depends on the problem and the extent of the work required, but we’ll use these figures to demonstrate a rough idea of the costs involved).
To entirely replace a tiled roof, the average cost is £4,952, but when selling up, according to thisismoney.co.uk, fitting a new roof could see a return of up to 63% on your initial investment.
New heating system
One of the biggest costs that can catch a homeowner off guard is a broken boiler, a very common problem that can cause a lot of inconvenience. This may have been something missed by prospective buyers in the past, but today one of the most commonly-asked questions when viewing a home is ‘how old is the boiler?’, so expect buyers to be negotiating on price if your system is old.
Installing a new heating system can appeal to prospective buyers with foresight that they won’t have to replace this for quite some time. The approximate cost to replace a combi boiler – in the same location as the previous one – is around £1,995, if you wish to place this in a new location, the cost can be up to £2,650. This can be a significant amount for a new homeowner to have to stump up, but doing so yourself before selling could see you achieve a 4% increase to the value of your property (and save yourself from being squeezed on price).
Create open-plan layout
An open-plan layout can create the illusion of a bigger, lighter living space, particularly when decorated the same throughout as the eye flows naturally around the entire area. According to Which?, adding a new open-plan kitchen could add 6% to your property’s value, at a cost of around £8,000. An open-plan layout is synonymous with modern living, making each living area a more social space that can be enjoyed and will appeal to almost everyone from first-time buyers to families alike. If this isn’t an option, consider adding concertina doors to give the feel of a more open layout. This cost will be significantly less but create a similar effect.
A loft conversion can cost anywhere from around £15,000 up to £50,000 depending on the rooms being added, whether structural changes will be necessary and what type of access is used, i.e. a staircase. This is likely to be the renovation that will cost you the most if you’re looking to add value to your property, but it could also provide a significant return on investment. Nationwide quote that a loft conversion can add around 20% to the value of your property. This of course depends on the work carried out and where you live in the UK. Compare this with the fact that adding a regular extension to your home can add 23% to its value and you may rethink whether the cost is worth it.
Add a bedroom or extension
Adding an extension to a property can create serious appeal and add a significant amount of value to your home in comparison to other properties in your area that have not been extended. The cost of extending, whether this be an extra bedroom or otherwise, is on average around £1,000 to £2,000 per square metre, depending on the contractor that you choose. This of course doesn’t factor in the further costs of decorating, fitting and furnishing the room as desired. To put this into context, the average size of a double bedroom is around 4 metres squared, so will cost up to £8,000 just to build.
Research by Nationwide revealed that on average, an extension can add up to 23% of this cost to the value of your property. An extra bathroom or creating an en-suite can add up to 6% and an additional double bedroom can add 12%.
Is it worth it?
So, if you were to make all of these improvements to your home, how much roughly would it cost you? Taking the higher end of each budget, we calculate that each of these renovations combined would set you back around £70,000 and could potentially return just ~£15,000 when selling, according to the ROI percentages gathered throughout the piece. Of course, naturally you wouldn’t be expected to make all of these improvements, but this may put costs into perspective somewhat.
Small budget improvements
Instead, you could be better placed making just a few small adjustments to your home to generate some further appeal. Here are some cost effective ways that could see your home sell a little quicker, in turn saving you the costs that come with your home taking a long time to sell.
Tidy up the exterior
When someone comes to view your home, the first thing they will see is the outside of the property. Ensure this area is neat and tidy, deweeding pathways, planting some flowers and giving your fence a lick of paint are all great ways to increase kerb appeal. According to Property Price Advice, keeping a neat and tidy garden could see as much as 20% added to the value of your home, as it makes the property significantly more desirable and could lead to multiple potential buyers trying to outbid each other. Better still, this is simply a matter of aesthetics and won’t set you back very much at all.
Install a shed
The garden feature that adds the most value to a property is a shed. This is because it’s a great bit of extra storage space to keep the things you wouldn’t want occupying space in your home. An article by Property Price Advice outlines that 82% of estate agents asked in a survey agreed that a garden shed is the top contender when it comes to adding value through the exterior of your property.
Giving the interior of your home a fresh lick of paint in neutral tones can brighten the property up, create the illusion of a bigger space and ensure the property appears modern and well presented to potential buyers. This is a small job to undertake but can make a home far more inviting, giving the impression that it is well looked after and saving the new buyer the task of redecorating if the neutral decor is to their tastes. If budget allows, you could go a step further and add some new carpets or flooring to the space to make it feel that little bit ‘newer’ for the new owner. According to ideal home, if done right, a paint and decorate job can add up to 5% to your home’s value.
Decluttering can again create the illusion of a much bigger space and showcase to viewers that the home has been looked after. This doesn’t mean to say throw everything away, as often a property that has a homely vibe can appeal far more to those in the market. In a recent article by The Express, it was found that decluttering, like painting and decorating, can add up to ~5% in value. Other than a few trips to the tip or the charity shop, this one won’t cost you a single penny (and you could even make money by selling some of the items you’re getting rid of!), a very good ROI indeed.
Lastly, it’s no surprise in the digital age that we live in that adding a few strategically-placed plug sockets around the home can have significant value. Buyers can be put off if your home appears to have few electric outlets, particularly in the kitchen where they’re likely to have an abundance of appliances to plug in. Opt for chrome or clean white sockets, as these aesthetically pleasing pieces can again see the ROI increased. This one won’t add thousands to your asking price, but it may just help in achieving a sale that much quicker.
So there you have it, these are the things you need to do to get ahead in a competitive property market. If the big cost projects are just simply out of your reach and you’ve made all the small changes that time and budget allows but you’re still struggling to sell your property, why not talk to us? We will buy any home, in any location, in any condition at all, for cash. Get an initial cash offer today, just simply begin by entering your postcode.