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6 Home Improvements That Add the Most Value
We explore the top 6 home improvements that increase value when selling a home.
In the property world, the adage "location, location, location" often takes precedence, but savvy homeowners understand that a property's condition and presentation can significantly impact its value.
Home renovation projects enhance the aesthetics and functionality of a living space and can substantially increase its market worth. One of the primary advantages of home renovation is the opportunity to revitalise outdated or worn-out elements of a property.
Whether it's updating a tired kitchen, modernizing a bathroom, or refreshing interior and exterior paint, renovations can breathe new life into a home, making it more visually appealing to potential buyers.
Additionally, renovations focused on improving functionality, such as adding storage solutions or creating open-concept living spaces, can enhance the practicality and comfort of a home, further increasing its desirability.
Here's a closer look at the advantages of home renovation and the refurbishments that can boost property value.
Read blog: Home Improvement Loans - The 7 Best Options
Cosmetic vs Structural Changes - Top 6 Renovations That Add Value
Certain refurbishments have been shown to offer a high return on investment, and for others, their value can be a bit exaggerated. If you’re a property investor or renovating your home with aims of selling in the near future, you could face a few challenges in this process.
Namely, while the vast majority of home improvements are touted as tried-and-true methods of increasing value, in many cases, it comes down to personal preference.
You may think that a sparkling granite kitchen might increase your property value, but the future buyer could prefer mid-century style and end up tearing it out, or worse, not buying your property because the changes you’ve invested in act as a deterrent rather than an incentive to buy. It’s important to do your research and make changes with profit in mind. Clean, modern, and simple tend to be the best bet when it comes to selling a home.
What changes definitively add value when it’s time to sell?
1. Loft Conversion
Loft conversions create additional living space and can enhance a home's functionality. They tend to be a cost-effective investment with the potential for a high return and offer the opportunity to cater to the needs of a wider range of potential buyers.
2. Curb Appeal Enhancements
A well-maintained exterior, attractive landscaping, and welcoming entrance can create a positive emotional connection and increase perceived value, ultimately leading to more interest and potentially higher offers from buyers.
Things to look out for include:
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Peeling paint
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Dirty walls, especially near door frames and light switches
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Dripping taps
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Squeaky floors,doors or stairs
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Mouldy sealant in kitchens or bathrooms
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Limescale build-up on kitchen and bathroom fittings
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Badly fitted laminate flooring
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Broken lightbulbs
3. Energy-Efficient Upgrades
Energy-efficient features can reduce utility costs and tend to be more attractive to buyers. Installing energy-efficient windows, doors, and insulation, as well as upgrading to high-efficiency HVAC systems and appliances, can attract environmentally-conscious buyers and improve resale value.
4. Bathroom Renovation
Renovating bathrooms can also substantially boost property value. Upgrading fixtures, installing new tiles, replacing outdated cabinetry, and adding features such as a walk-in shower or soaking tub can enhance functionality and aesthetics.
5. Kitchen Renovation
According to Remodeling Magazine's 2022 Cost vs. Value Report, kitchen remodels have a national average ROI between 52.5% and 71.2%. When selling a home, more extensive renovations tend to see lower returns than smaller projects.
6. Driveway / off-road parking
Access to off-road parking can significantly enhance the appeal and marketability of a house. Potential buyers often prioritize convenience and security when searching for a new home, and off-road parking offers both. It provides a designated and secure vehicle space, reduces street congestion, and eliminates the hassle of finding a parking spot, a common headache in more urbanised areas.
Home Improvements to Boost Wellbeing
Just because some refurbishments don’t directly impact ROI doesn’t mean they’re not doing it. It may be that you’re remodelling your home with yourself instead of a future buyer in mind.
Property renovations can last for as long as thirty years and enhance your wellbeing by creating a more comfortable, functional, and aesthetically pleasing living environment.
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Increasing natural light through larger windows or skylights can improve your mood and help regulate your sleeping patterns.
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Outdoor living areas such as patios or gardens provide opportunities for relaxation and connection with nature, promoting emotional wellbeing.
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Additionally, updating your decor to reflect your unique style can help you feel at home in your space.
Refurbishments like these shouldn’t be a focus if you’re an investor, but if you’re not planning on moving any time soon, there’s no reason to refrain from personalising your living environment. By investing in these home improvements, you can take ownership of your space and live a happier and healthier life at home.
Increasing Property Value – How to Fund it
Paying upfront when undertaking a refurbishment project isn’t always an option, but it’s still very much achievable. Using finance can be a manageable way of funding a home renovation project, and various options are available. From bridging loans to second charge mortgages, there's a wide range of affordable funding to facilitate your property refurbishments.
Read more: The 8 Best Ways to Finance Home Improvements
At Clifton Private Finance, our team of specialist financial advisers have expert knowledge of the short-term and long-term lending markets so that we can meet the needs of homeowners, landlords and property investors alike.
From start to finish, your dedicated adviser will guide you through the process, be readily available to answer any questions and relieve stress and hassle.
Our strength is our ability to access funding solutions from high street and private banks and specialist lenders. We can provide access to tailored finance solutions and offer exceptional client care.
Call us on 0203 900 4322 to discuss your requirements or book a free consultation below.
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