Not all improvements to a house will automatically add value. Some improvements might even cost more than the value they will add to your house. Here are 5 tips to consider when thinking about a home renovation:
- Energy Efficiency
One thing to keep in mind is that energy efficiency is a huge selling point for many prospective home buyers. These prospective buyers are not only looking at the home itself but the home’s running costs and environmental issues. One thing to address a home’s energy issues, is to hire a professional energy auditor to come in and inspect the house. Some of these improvements can be simple to fix, and could boost the home’s energy efficiency considerably.
- Be Objective
This come as an obvious tip, but you should realize you are only able to turn your investment into a return if you are able to sell your home at a good price. When considering making improvements and renovations to your house, you should consider if they will have a broad appeal.
Two of the biggest factors that help determine a property’s value are size and location. While it is hard to change the location, adding space to the house can be a very effective way to add value to a house. Attic conversions or basement finishing are two of the most cost effective ways to add value to your property, with a rear extension adding slightly less.
- Local Research
There is a maximum amount that a house can be valued at in different neighbourhoods. Therefore it would be beneficial to look into the area in and around your house, as a house can only be valued at a specific amount, even with improvements and renovations. Take into account the amount of work and money in relation to the maximum sale value of houses that are similar to yours. You must also keep in mind that going over this figure is a risky investment.
One major thing to consider when making renovations and improvements is to avoid losing rooms of the house. If you decide to expand the room size at the expense of losing another room, it is extremely likely you will be reducing the value of your house. Another thing to do is to be flexible with the layouts of the house. Consider installing dividing doors or make it easy to reinstate stud walls, so potential purchasers can change the layout of the house to meet their needs.