Unless you’re plugged in to the real estate grapevine in your area, consulting with local real estate agents helps you get a sense of what the local housing market is like now. This helps you figure out what repairs or replacements that will provide an increase to your home value on the market.
Checking out what the local government housing regulations are also helps provide a better sense of what you can and can’t do. Some homeowners’ associations also have a set of rules regarding renovations and repairs that you might want to have a thorough read through. For example, the homeowners’ association in your area might have a rule regarding the number of or even the type of trees you can put in your yard.
So how exactly does one go about adding value to their home?
Converting loft space
Most real estate agents agree that converting a loft to a usable living space such as a master bedroom can increase the value of a home by at least 10%. When converting a loft to a bedroom, it’s important to consider the roof pitch and structure, as well as how much headroom and standing space there is.
Depending on the existing headroom and standing space of the loft, you may either need to raise the roof or lower the ceiling of the room directly below the loft. Raising the roof can be very costly, so it’s important to consider how much you will be willing to spend and how much value you foresee being added to the home once the loft conversion is done.
Usable square footage
Home selling tips from The Advisory note that adding more usable square footage, like adding rooms, increases the likelihood of a better — and maybe even faster — sale of the home. It is, however, important to note that a room is less likely to add value to a home if another portion of the home already fulfills that role. For example, having another kitchen or another living room added will be less likely to increase the home’s resale value compared to increasing the bathroom count of a home from one to two.
Consider the neighborhood that your house is also located in when creating more usable space. A neighborhood filled with 3 bedroom homes will attract buyers who are looking for a 3 bedroom home. While they might be into the addition of a fourth bedroom, they’re less likely to purchase a 6 bedroom property in a neighborhood full of 3 to 4 bedroom homes.
Kitchens and bathrooms
Replacing outdated kitchen and bathroom fixtures can easily increase your home’s value by 5 to 10%, depending on the project. Older houses on average have just one bathroom for the entire house. Adding a new bathroom, especially an en-suite, is generally viewed as a wise choice for most people looking to sell a house.
Be careful when undertaking home improvement projects. Some buyers are looking to make their own renovation projects, especially the kitchen. So as a general rule of thumb, it’s advisable to create small-scale improvements to the kitchen that will increase its aesthetic value; most buyers are looking for ‘clean slate houses’ where they can replace countertops and shuffle things around in the kitchen to fit their needs.
