Improving the value of your home is a great way to boost your equity and potentially increase your return on investment when it comes time to sell. However, many homeowners are unsure of the best way to go about it.
Mortgage broker L&C Mortgages, has provided some expert tips on how to increase the value of your home if you are thinking of remortgaging to a new deal or perhaps selling up and buying elsewhere.
Improve your home’s energy efficiency
Improving your home’s energy efficiency not only saves you money on utility bills it can also increase your home’s value. If you have the capital, installing energy-efficient windows, insulation, and appliances is a sure-fire way to make your home eco-friendlier and more attractive to prospective buyers.
You can also consider adding solar panels, a smart thermostat, or a tankless water heater to make your home more energy efficient. While these upgrades aren’t cheap, they can pay off in the long run, both in terms of energy savings and increased resale value.
Boost your home’s curb appeal
First impressions matter, and the exterior of your home is the first thing potential buyers are likely to see. Improving your home’s kerb appeal can increase its value by as much as 10%, according to a study by the Royal Institution of Chartered Surveyors (RICS).
Consider adding a fresh coat of paint to windows, doors or other painted surfaces where possible, planting some flowers or fresh grass seed to revitalise a front or back garden and ensure your exterior is well-maintained. Also consider adding some outdoor lighting, updating your front door by replacing rusting, or dated names or numbers, and adding a new mailbox to make your home more visually appealing.
Add an extension
If you have the space and budget, adding an extension can be a great way to increase the value of your home. The ONS found that on average, each square meter of property space in the UK is worth £2,907, which means adding even a small extension can add significant value to your property. According to Checkatrade, the average price for a 20-meter squared extension is £44,000, meaning that the added space from an extension could increase the value of your home by £58,000.
Keep in mind that the cost of an extension will depend on various factors, including the size of the extension, the materials used, and any necessary permits or permissions. However, if done correctly, an extension can be a significant investment that adds both functionality and value to your home.
You might need planning permission before building an extension, but simply getting the relevant plans and permission in place can enhance the value of your property, even if you don’t have the work carried out.
Convert an existing room
Converting an existing room into a bedroom can be a cost-effective way to increase the value of your home. Whether it’s a spare room, home office, or storage space, converting it into a bedroom can make your home more appealing to potential buyers. L&C Mortgages on properties for sale in the UK, and found that adding an extra bedroom – to a two-bedroom semi-detached house for example – can increase the value of a property by 20%.
It is worth keeping in mind that the cost of converting a room into a bedroom will depend on factors such as the size of the room, the amount of work required, and the quality of the finishes. However, unlike adding an extension, converting an existing room to a bedroom is often more affordable and requires less time and effort.
Keep up with the maintenance
Regular maintenance and upkeep are crucial to maintaining your home’s value. Ensure that your home is well-maintained, free of structural issues or pests and that all appliances and systems are in good working order.
This means regularly cleaning your gutters, checking for leaks, and performing routine maintenance on home appliances. Keeping up with maintenance can help prevent costly repairs further down the line and ensure that your home remains in top condition.
Following these tips can improve the value of your home and potentially increase your equity and resale value. Remember to consult with a qualified professional before making any significant renovations or investments in your home.
A professional can help you determine the best action based on your budget, timeline, and goals. With a little bit of planning and effort, you can make your home more valuable and attractive to potential buyers.