After seeing strong rises in property values since the COVID pandemic began, the experts are predicting that the market will cool for the remainder of 2022. While this is fantastic news for first time buyers, it does pose a problem to those who are looking to sell their homes in the near future. With this in mind, we’ve put together a handy guide for those who are looking to maximise their property value before selling with the help of expert, Gary Hemming of ABC Finance Ltd.
The key to maximising your property value is to undertake home improvements, specifically improvements that hold a broad appeal. This means that you should aim to make your property appeal to the widest range of people possible, rather than being the dream home of a few people.
This approach gives you the greatest chance of competing buyers driving up your sale price and makes it easy for potential buyers to imagine putting their own stamp on the place.
While most property improvements will add value to your property, there are some that offer the best return. The first is improving the curb appeal of your property as a strong first impression will set you in good stead as viewers move through the rest of your home. This doesn’t have to cost the earth, but making sure everything is clean and tidy is an excellent start.
A garage conversion costs an average of £14,500 and increases property values by and an average of over £27,000 to the value of your home. This leaves you with a profit of just over £12,500.
Secondly, updating the kitchen of your property can be a real money earner. The average kitchen costs £8,500 and can come in far below if you take on some work yourself, and adds an average of £15,000!
Surprisingly, research from MoveStreets showed that a garden office can produce over £13,500 in profit, costing £9,000 and adding over £22,500 in value! Of course, this depends on the size of your garden, as taking up too much of your garden could reduce the appeal to many.
Finally, updating your bathroom can result in an uplift in value of 80-130% of your spend. This means that a £10,000 bathroom upgrade would result in between £8,000-£13,000.
Increasing the energy efficiency of your property
With the cost of living crisis biting, improvements to the energy efficiency of your property can dramatically increase demand for your home.
The most profitable improvements in this area are home insulation, including cavity walls, floors, roof and loft insulation. Adding insulation to your property can dramatically reduce your energy bills and increase your property value in the process, while costing very little to do.
Windows are another big potential saving, although the outlay may be a little higher. That said, depending on the windows required and your property value, it can still be a very profitable move.
Some very quick and easy wins are draft proofing and energy-efficient lighting, which can all be added to your home at very little cost.
How can I finance these improvements?
All of this may be very profitable, but if you don’t have the money to do the work, you’re going to struggle. Luckily, there are plenty of options out there for those looking to undertake property improvements.
The options available include personal loans, secured loans, bridging loans and credit cards. Bridging loans can be secured against your home and allow you to roll up your monthly payments while work is being completed. This obviously must be kept under control to avoid costs spiralling, by using a bridging loan calculator to check your costs.
A secured loan is another strong option that can be secured against your home, but it’s important that you’re mindful of any early repayment charges should you pay back this loan early. This can often make them unsuitable for those who are looking to refurbish their property and then sell soon after.
