Home Improvements – The Good, The Bad and The Not So Ugly

As the gap between perception and what realistically will add value to a property appears to widen we look at what will see the best return on investment, what will simply increase saleability and what home improvements are the costliest mistakes.

To Add Value

Central Heating

Even if the house is old people will expect central heating. Investing in a new boiler and central heating could add up to 13% to the value of your home. Expect to spend between £1,000-£3,000, but reap £5,000 in added value.

Off- road Parking

An increasing number of households own more than one car and according to a survey by estate agents Spicerhaart parking and garage space are buyer’s top requests. In the city where parking is at a premium off road parking is like gold dust. In particularly expensive locations a driveway could add as much as £50,000 to the value, compared to £10-£20,000 in labour and materials (you may need planning permission). On the other hand property expert Phil Spencer advises that a garage is a wasted asset as most British garages do not contain a car.

To Help Sell

Double Glazing

To most buyers double glazing is a must, it not only appeals to prospective buyers because the property is more energy efficient but is one less job on the ‘to do’ list. Although new windows improve kerb appeal don’t expect them to add value, if it costs £2.5K to install them estate agents suggest your property would increase by £2.5K. Make sure the windows are in in keeping with the style of the house though, or risk losing value!

Redecorating

A fifth of home owners believe that redecorating adds the most value to a house, according to a survey by LV. They may be disappointed to learn then that they are unlikely to see their investment returned with seven out of 10 estate agents claiming that expensive décor makes no difference to the asking price of a property. Although a freshly painted home will appeal to buyers, splashing out on expensive furnishings are unnecessary as most buyers are looking to personalise a property to their own taste.

Landscaping

According to the LV survey 12% of home owners believe garden work will add the most value to their home but in reality landscaping is unlikely to add any value. Whilst paving, decking, luscious flower beds and new hedges might add to the properties appeal, as opposed to an unkempt, unusable space, some buyers might be put off by a high maintenance garden. Generally a garden is a huge plus point, especially in a city, but a neat, simple garden, that requires minimal investment from you and the chance for buyers to adapt to their needs, is most appealing.

New Kitchen

The kitchen is widely regarded as one of the most important rooms in the house. Many homeowners wrongly assume that a new fitted kitchen will add the most value to their home, but 22% of estate agents polled by LV suggested that a new kitchen will have no impact on the price of your home and could lose you as much as £12,000. Although other experts suggest it could add value they warn homeowners not to fit an overly expensive kitchen in a reasonably priced home if they want to see a return on investment.

The Biggest Losers

Swimming Pool

A swimming pool might sound like a great selling point but high maintenance costs and unsuitable British weather mean that most buyers will fill a pool in. With in-ground versions costing an estimated £30,000 that’s a lot to be negotiated off the asking price! Experts suggest that in a worst-case scenario you could lose up to 20% off the value of your home in addition to the cost of the pool.

Loft Conversion

Whilst a professionally done loft conversion can add around 8% to the value of a property, the cost of the work will be more than the added value. An average loft conversion costs £35,000 but according to a survey of more than 200 estate agents you can expect only £17,600 to be added to the sale price. Phil Spencer suggests to work out the value added multiply square footage gained by local price per square foot.
According to an LV survey 900,000 homeowners have attempted major building works, such as loft conversions, without professional help in order to save the pennies. Be warned tough as an unprofessional job could lose you as much as 5% of the sale price.

Conservatory

An extension, such as a conservatory, will also add nothing to the value of your home and will cost you as much as £9,500. The additional space might seem an affordable luxury but is likely to price you out the local market, if you wish to recoup the initial costs. A conservatory that does not fit with the house is also likely to decrease the value of your home.

PS For those looking to increase their standard of living rather than add value to their property, by creating extra space with a loft conversion for example, the economical value of these home improvements may not apply!