Renovating your home is something you typically undertake to make your home feel more like your own. It can be a slow, iterative process, from painting the living room to making major changes to your bedrooms. However, renovating your home can also have a positive impact on its market value – making it an extremely useful way to combat the downward pressure of the market on property values at the moment. But what renovations could you undertake to improve the value of your home?
Budgeting for Renovations
Home renovations are unavoidably costly endeavours, even if relatively minor DIY undertakings. Between the cost of tools and materials and the cost of professional labour, the price attached to a given household project can start to balloon. Of course, this does not make them any less profitable a venture, given the significant amounts of value that they can add to your property’s market value.
Here, though, it is important to undertake some research as to which renovations might be the most profitable for your specific case. If your property is on the smaller side, adding a bedroom via extension might yield the most impactful results. If your home is on the larger side, an outhouse or a sunroom might have a bigger impact in terms of appeal.
You will also need to plan your finances around these renovations carefully. While it is possible to save up the amount necessary to complete this work directly, the eventual sale of your property makes lending a much more accessible option for the average homeowner than otherwise. Indeed, a secured loan against your home can make it possible to fund more expensive and invasive renovations, in turn maximising your eventual returns. But which renovations are best to consider for such a plan?
Extensions are, by far and away, the most profitable form of home renovation from a market value standpoint; they provide the single biggest leap in property value, through tangibly increasing the square footage of the property available to purchase. Two-storey extensions allow the building of another bedroom, with bedroom space often being the most sought-after in buyers.
Next to extension, though, is conversion. Loft conversions are a cheaper and generally more accessible form of renovation, yielding a smaller rise in value but one somewhat offset by lower renovation costs. Again, these can increase the bedroom count of a property and improve its chances, as well as its price, on the market.
The kitchen is often regarded as the heart of the home, even if we spend just an hour a day in it on average. A good kitchen makeover can be transformative for the appeal of a property; it can increase the value somewhat, particularly if expensive and desirable appliances are built in, but it can also greatly impact first impressions of the home. This could lead to quicker, and higher, offers.
Speaking of first impressions, a major landscaping operation could have a great deal of impact on kerb appeal for your property. Adding features and structures can increase value, but all the more valuable is the neighbourhood impact – raising the profile of the neighbourhood as a whole, and spiking interest in your area too.