When renovating a property, one of the main objectives is to add a substantial amount of value to the building. There are many ways to accomplish this – some more ambitious than others – but we have gone ahead and compiled a summary of some of the most effective ways to add to your home’s market value.
A loft conversion can be one of the best ways to add an extra room to a house. By adding floors, windows, a flight of stairs and wiring for lights and outlets, a homeowner can readily turn their loft into a bedroom or even a lounge. Costs can be as low as $20,000 for a simple living area, however a bathroom will obviously run closer to $50,000 due to the costs of installing proper plumbing. Whilst a loft conversion will obviously provide a great degree of utility to any prospective homeowner, it should be noted that this is a major undertaking and a significant investment that will take time to complete.
A simpler way to boost the asking price of your home is by investing in a kitchen refit. The kitchen is the focal point of the home, and one that makes good use of the available space and is built with high-quality materials will be a major draw for potential buyers. A sub-par kitchen, however, will drive away customers by virtue of being cramped and cheaply constructed. If you have an especially small kitchen, it is worth taking into consideration the possibility of going as far as to remove dividing walls to create a combined kitchen and dining area.
The cheapest way to add value to your home is to get outline planning permission (also known as ‘zoning permission’, dependent on your location in the USA) for an extension to the building. This alone will act to increase the price, as it makes the property desirable for builders or more ambitious property flippers who want confirmation that the local council will not act to thwart their plans for renovation. The good thing about outline planning permission is that very few specific details of the planned development are required, aside from the general dimensions and location. This means that the associated costs and hassle (i.e. hiring an architect/contractor to go over the details) are passed on to the eventual buyer.
Speaking of extensions, it is best practice to follow the mantra of ‘extend as much as possible without being excessive’. This makes sense for two reasons. Firstly, although there will be a high base cost of materials and labor, extra room in a house always adds value so the ROI for the extension will only increase as more space is added. Secondly, an extension that disproportionately intrudes into the garden will turn away a fair number of buyers, so exercise common sense when drawing up your designs. An excessively large extension might also draw the ire of your neighbors or Homeowners Association, so it can be best to tread carefully depending on your local planning laws.