How to add value when renovating a property
Are you keen to update your home to increase its future resale value? Or are you interested in buying an outdated property to flip for profit? Whatever your situation, it can be tricky to figure out how best to add value during a renovation project.
That’s why we’ve put together this quick guide on how to upgrade a space and its price tag.
Stick to a budget
The key to any successful renovation project is a well-thought-out, realistic budget. It’s essential to plan your finances properly to avoid overspending and end up putting more cash into the house than you’ll get back when you sell.
There are many ways to finance your project, including using your own savings, remortgaging or obtaining a secured loan. If you have a number of existing debts, you may find it beneficial to take out a debt consolidation loan to bring the payments together.
Choose high-value rooms
When renovating any property, there are certain rooms that will add more value than others when modernised. Property experts Zoopla state that a new kitchen, loft or garage conversion could increase the value of your home by up to 15%.
For a house worth £300,000, this could add up to £45,000 onto the purchase price. The key here is to make sure that the total cost of the upgrades (whether that’s installing a new kitchen or putting a bedroom in the loft) doesn’t cost more than the value it will add.
Extend the living space
Can you add an extra bedroom? Make the kitchen bigger? Or create additional living space? Extending the living space can help to increase the value of your property as higher square footage is often sought after among buyers.
There are many ways you can do this, such as building another room over the garage, converting the loft or adding an extension. Consider what would appeal most to buyers in your area and get advice from a local agent on which type of extension would add the most value to your property.
Consider kerb appeal
What’s the first thing a potential buyer sees? The outside of the house. That’s why it’s so important to put thought into making the exterior as attractive as possible during your renovation.
What needs doing will depend on your property and budget. You could consider a fresh lick of paint, rendering the exterior or installing new, modern windows. If this isn’t necessary or is out of reach financially, simple things like potted plants, de-weeding and power washing the drive can make a huge difference.
By creating a budget, carefully considering which rooms to spend money on, extending the space and improving kerb appeal – you can help to add value to your property as you renovate.
You May Also Enjoy
Average 5-year fixed mortgage rate now above 5% for first time since January – Rightmove’s weekly mortgage tracker
Real Estate Lawyers: Who They Are and What They Do?
Weekly News Roundup – 03/05/24
Rightmove’s weekly mortgage tracker – 02/05/24
Powering Up Your Brokerage: How Real Estate Apps are Transforming the Industry