How to successfully add value to a home
Home improvement updates that provide a return on investment
In the UK, first time buyers typically save for eight years for a deposit to buy a home. While most buyers choose a home that accommodates their current lifestyle, considering its potential resale value is also important. However, with complete home renovation being a costly project, which home improvements will provide a significant return on investment? Here, Nick Cowley, managing director at leading window and door manufacturer Euramax, explains how to add value to a property.
People who are interested in renovating a property often fit into one of two categories: homeowners who have already lived in the home for a long time with resulting wear and tear, or buyers purchasing a neglected home for a cheaper price. In either of these circumstances, it’s important to weigh up which home improvements will yield the most transformative result and resale value.
Extensions, conversions and renovations
Adding an extension is likely the most expensive home improvement project, but could also yield the most profit. In fact, a survey conducted by Zopa, of 1,550 UK homeowners who had recently taken out a home improvement loan, found that extensions generated the most profit, generating an average of £17,090. The extensions that add the most value are those that add an extra bedroom or bathroom to the home, raising its occupancy potential.
If outdoor space is limited, or the homeowner desires a simpler project, loft conversions can have a similar effect. In fact, Nationwide found that, whether through an extension or loft conversion, adding a double bedroom and bathroom can add 20 per cent to the value of a three-bedroom, one-bathroom house.
However, significant results can also be achieved through room renovations. Most real estate experts agree that if you are going to renovate one room, make it the kitchen. According to the National Association of Estate Agents (NAEA), 65 per cent of homeowners renovate their kitchen before selling.
With kitchens becoming increasingly used as a social area rather than purely just for cooking, creating an ergonomic space with an inviting atmosphere is a must. Renovating a kitchen can increase the value of a home by around five to ten per cent.
Windows and doors
Updating the interior of a home is important, but it must be emphasised that the face of the building determines the buyer’s first impression. According to research conducted by Strutt & Parker, 76 per cent of property purchasers surveyed agreed that first impressions are everything when they visit a property.
The best way to improve the exterior appearance of a house is to update windows and doors. Not only is this a quick way to get a substantial transformation, but there are lots of different design options available, from the frame material and its colour, to the style of glass.
The improved appearance will add value to the home, and this will be enhanced by the functional benefits. With many buyers looking for environmentally friendly features, upgrading to efficient, double glazed windows will add further value to the home. In fact, Zopa’s home improvement survey found upgrading windows and doors provided a 23 per cent return on investment.
With over 65 years’ experience in the manufacturing industry, Euramax is the UK leading supplier of PVCu windows, doors and composite doors. All frames are available in white, Chartwell green, golden oak and grey, with Georgian bar and frosted glass styles also offered. Furthermore, all products are quick and easy to install, rated A for efficiency and come with a ten-year guarantee. If standard sizes aren’t suitable, Euramax offers a bespoke service at trade prices to ensure a perfect fit.
Buying a home is the largest investment many of us will make in our lives. This is why it’s especially important that we invest in a way that delivers the most value and ensures that our time and money is well spent. Adding extra rooms, renovating the kitchen and upgrading windows and doors can significantly increase the value of a house — transforming a fixer-upper into hot property.
To find out more about kerb appeal and how it can help to sell a home quicker, check out our comments on Arbor Living.