Is A Home Extension A Cost-Effective Project?
As an estate agent, it is your job to give advice to your clients in order to get them a higher price for their property. While some agents just focus on getting the sale done in time, others want their clients to be happy with the final result. One of the questions you might have been asked before is – is a home extension a cost-effective project?
Here, we are going to look at the answer to this question. We’ll look at everything from the cost of the project to the kind of return that you’ll get on it. Keep reading below if this is something that you’d like to know a bit more about.
How Much Will It Cost?
The first thing to consider when deciding if a home extension is cost-effective is the actual cost of the project itself. The truth is that there is no exact figure on how much a home extension will cost because the total cost can depend on the property that you are building it on, planning permission and more.
Some extensions will cost more than others for example, building a basement in London homes might be cheaper than a full two-story extension. In the UK, you can expect a hackney extension to cost around £3400/m2 in the garden. For a pod house, you’ll expect to pay £1100/m2 for internal refurbishment and £2500/m2 for the rear extension.
Ultimately, the cost is up to the homeowner to figure out based on what they want and what they are working with.
Types of Extensions to Consider
As we have mentioned above, different types of home extensions will cost different amounts to build. There are many more types of extensions that you can choose from, although we are sure as an estate agent you already know this.
Some of the types of home extensions that your clients might want to consider include a folded house extension, a loft conversion, an attached garage or a semi-basement garden extension. Make sure to find out more about these online before committing to anything.
How to Cut Costs
There are a few ways to cut the costs of a home extension in order to make it more cost-effective. This includes choosing building materials that are easier to come by and that are reasonably priced. On top of this, it is important to only buy what is required for the project and so careful planning is key. For example, if you are starting with concrete, a concrete mix calculator can come in handy. With the help of a concrete calculator, you can reduce waste and reduce costs along the way.
Other ways to cut costs include finding reliable contractors who are cost-effective or doing some of the work yourself. Make sure to discuss these options with clients who are considering building a home extension in order to increase the value of their home.
Is It Worth It?
As we have discussed above, a home extension can cost thousands. For this reason, you need to decide if it is worth the initial investment and what kind of return the client can expect on this kind of project.
According to Nationwide, an extension that adds a double bedroom and an en-suite to a three bedroom home can add up to 23% to the value of the property. On top of this, research suggests that the average return on investment for an extension is 71%
Ultimately, these figures speak for themselves and indicate that the work and the money that goes into this kind of project can definitely be worth it.
What To Consider
While an extension can be both cost-effective and worth the time, there are some things to consider. An extension that is done by someone who is not properly trained to build or install things could cause further problems and affect the value. As an estate agent, you need to ensure your clients are choosing reliable companies to create this extension and that planning permission has been applied for.
If shortcuts are taken and things like screed calculators are not considered, it could end up costing more than it is worth in the long run.
Final Thoughts
Overall, we would suggest that building an extension to an existing property is something that is cost-effective. A lot of value can be added to a property and many buyers will love the fact that there is a brand-new addition to the home. Extensions can add new bedrooms, bathrooms, living rooms or even garage space.
If you are offering advice to a client in the future regarding an extension, make sure to consider everything that we have discussed in this article. Hopefully, this should help you all to make the right decision.
You May Also Enjoy
Why Join a Letting Agents Association?
House price growth remained subdued in July
Rent hikes and tighter tenant checks as landlord costs climb
North-South divide for time to move as Londoners see longest wait
Dispelling the top five biggest letting agent myths
