Will Your Home Improvement Purchase Affect Property Value.
Most products do not make a difference to the value of your home, except for a solid roof extension that adds rooms. This is often something that is said by a salesperson who has a vested interest in you buying the product in question. What they can do is make your home more saleable, appealing to more buyers.
If You Are Not Planning to Stay in Your Home Forever, it’s Worth Considering the Effect on Property Value When you Make a Major Purchase.
Most home improvement purchases do not affect the value of your home as long as your new product appeals to the mass market. Viewers often cannot see past your personal taste to envision the possibilities for themself. It helps them if they can see themselves living in your space. Of course, some of your prospective buyers may share your taste but if your choices do not appeal to the mass market, you may limit your potential to sell as quickly as you would like.
You will never please everyone so don’t choose something you dislike to please a future buyer. Just bear it in mind.
Kitchens and Bathrooms.
If you choose a brightly coloured kitchen, it may repel buyers and not so much devalue your house, but diminish your ability to sell, which can force a reduction. The kitchen is often the main selling point of the house but unless it is stunning, most buyers would rather choose their own. When the kitchen is not to the prospective buyer’s taste, they usually want to negotiate to allow for the cost of replacing the kitchen. You will not please everyone so the kitchen is definitely one purchase that should be designed specifically for your needs unless you are planning to sell within a short period.
If you have dreamed of a purple, high gloss kitchen, talk to your designer about designing it in a way that would allow for changing the doors to a neutral colour if you do decide to sell.
A well-designed bathroom will never put a buyer off as long as it is clean and bright. Bathrooms are not considered to be so expensive that a replacement would put a buyer off unless it adds to a long list of work that needs to be done.
A conservatory can add value if it is done well but if not, it can have a detrimental effect. More elaborate roofs such as Edwardian or Victorian have more appeal than a lean-to, (sloped, rectangular glassed, roofs) but this can depend on the style of the house. Glass roofs are generally more desirable than polycarbonate roofs.
The main concern is that viewers see it as a valuable addition to the home. It must appear as an extra room on viewing day, not as a dumping ground for the ironing. If it can be seen as an extra living room or dining room, it will be viewed in a more favourable light.
Conservatory blinds may help you achieve your asking price if they are a great addition to the conservatory in making it a useable room. If they are old and dusty with insect stains, consider removing them if they can’t be cleaned.. The conservatory needs to look like a bright and airy garden room that they can imagine using..
Windows and Doors.
New windows rarely add to the value of a house, but prospective buyers will make assessments regarding what needs to be done and how much it will cost. They always round up. The estimate of the cost in their mind, which they deduct from the offer price, is higher than the real cost. It can be worth having the windows replaced. You can enjoy the benefit while you still live there, the house is more saleable, and you give prospective buyers less ‘red flags’ to drive the price down.
Shutters, Curtains, and Blinds.
Blinds and soft furnishings will not affect the value of your home. Viewers can easily see that they can be replaced or removed without too much effort or cost. In general, it is preferable to see soft furnishings that are not dark and gloomy because it diminishes the illusion of space. When a room is light and bright it feels as if it is bigger.
Shutters are expensive and if they are fitted well, in a house that suits them, they can help if your viewer loves shutters. Others dislike them because of the light that they block out and the difficulty in cleaning them. Choose them if you love them, not for the purpose of selling.
Fitted furniture in bedrooms, studies and living rooms do not affect the value at all. They contribute to the look of the property which can help to appeal to more buyers. Good storage is appealing especially in small houses that do not have otherwise have it. If you are considering buying fitted furniture, you can take it with you. Most customers imagine that fitted furniture isn’t moveable but it is easily done. You would need it to be refitted with new scribe and possibly added to if the new room is bigger. Ask about that before you buy because you will want to make sure that the colour will remain available.
A well-fitted study can be a great addition if the room is originally designed as office space in addition to the expected amount of rooms. If it takes away space that would more often be preferred such as a bedroom, playroom or utility, it could have a negative effect. Again, in theory, you can take a study with you and have it refitted. The number of useable rooms is the biggest factor in determining the price. If you are using one as a study, try to show that it also could be used as something else. This may depend on your target market. The needs of a young family are different from an older couple who’s children have left home.
Solar panels are difficult to assess in terms of whether they add or detract from the house value. Those who buy them, think that the savings outweigh the aesthetics. If you are selling to someone who thinks the same way that you do, then it is unlikely to sway them either way. In theory, you can take solar panels with you if necessary. Solar panels that are installed free of charge in return for a share of the savings can cause problems when selling the house. Check with your supplier.
Value also depends on where your house sits in the price ladder at the time of sale. If your house is worth £245,000 and you spend £15,000 on a conservatory or a kitchen, it is unlikely that you will recoup your money. Marketing the house at £260,000 attracts 5% stamp duty, £13,000 compared to £4,900 at 2% for houses under £250,000. It is hard to make the jump to £300,000 unless you make significant changes to your house or live in an area where prices are moving fast enough that you can ride that wave.
Location is another consideration. Home improvement products are the same price regardless of where in the country that they are bought, but there is a huge disparity in house values. I have worked in Surrey, Hants and London and I have a general rule of thumb that a kitchen should not be worth more than five percent of the value of the house; less if possible. The same kitchen bought for a house in an area where the property values are much less costs more as a proportion to the value of the house. A kitchen or conservatory costing £15,000 in a £300,000 house is 5% of the value. A house of the same size in another area could cost £150,000 making the kitchen 10% of the value which is out of proportion.
Adding Extra Rooms.
The only home improvement project consistently shown to add value to a house is the addition of extra living space. Loft conversions, extensions, garage conversions and conservatories, sometimes. A survey by NAEA Property Mark shows that over 50% of estate agents believe that adding another room is of most benefit while a third thought a new kitchen was of more benefit. Sometimes, even if you do not want to build the extra room yourself, it can be worth having plans drawn up and submitting them for planning approval. Potential also can have value.
Whatever you decide to do, it may be worth asking your local estate agent about known preferences in your area.
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