Adding value to your property can come in many forms, depending on your goals. In this article, you will learn about the different types of home improvements at your disposal that could increase your property’s value – continue reading.
Can I add value to my property with home improvements?
There is no definitive answer to this question as the value that any given home improvement will add to a property depends on a variety of factors, including the specific improvement made, the condition of the property before the improvement, the local real estate market, and so on.
However, in general, home improvements that increase the functionality or appeal of a property will add value to your home.
Why should I add value to my property?
Whether you are looking to sell your home, or improve it for yourself and your family, it is important to consider whether the home improvements you plan to undertake will raise the value of your home – as you might want to sell it at one point or another.
How to add value to your home with home improvements
There are many home improvement options that can add value to your home. Some of the most popular home improvements include adding a new roof, updating the kitchen, adding a bathroom, and adding a deck or patio.
There are many ways to add value to your property, and the following are some of the most popular:
Renovating
This is one of the most common ways to add value to a property. Renovating can include anything from repainting the walls to renovating the kitchen or bathroom.
Upgrading
Upgrading features such as the roof, windows, or heating and cooling system can also add value to a property.
Extension
Adding an extension to your home can be a great way to add extra living space, which can be especially useful if your family is growing.
Landscaping
Landscaping can add a lot of value to a property, especially if it is done well. A well-landscaped yard can add beauty and privacy, while also increasing the value of your home.
Home improvement added value by improvement type:
Additional bedroom
Adding an additional bedroom can add value to a property, however, the percentage of the increase depends on the house, location, and the market.
If you live in an area with a high demand for housing, then an extra bedroom will likely increase the value of your home. However, if you live in an area with low demand for housing, an extra bedroom may not add much value to your home.
An extra bedroom can add value to your home because it allows for more space and privacy. It can also be used as a guest room, home office, or nursery.
Garden
According to research by Paving Direct, garden space can increase the rental value and consequently the market value of your property by up to 43%!
Of course, the percentage it rises by is significantly dependent on the location of the property. For example, the average rental price in Birmingham increased by 33% when the property included a garden, whilst only by 0.75% in Sheffield.
Home extension
As with any home improvement, it is difficult to determine the added value without knowing the location, house & extension type and many more details.
In most cases, an extension can add anywhere from 10-50% to the value of a house – check out our guide on what to consider when extending a home for more information on home extension added value and other considerations.
Conservatory and double glazing
Enhancing your property with double glazing and a conservatory are great methods for adding value to your property, with both adding a value of up to 10% depending on your home location and quality.
Installing double glazing gives your property extra warmth, more security, and fewer mould problems. Depending on the energy efficiency of your windows, new double glazing could add a maximum of 10% value to your home.
Conservatory experts from KLG Rutland advise that despite the large upfront cost, a conservatory adds a value of up to 5% as long as it’s of a high-quality standard and doesn’t severely impact the size of your garden. With seamless integration into your home, the extra conservatory living space could be incredibly desirable to buyers.
Garage
The value that a garage adds to a property varies depending on location, property type and the market. However, in general, a garage adds up to 5% of the property value.
Garage conversion
Another idea of how you could attempt to increase the value of your home is by converting your garage into an additional living space.
According to Admiral, the most popular conversion ideas in the UK are turning the garage into a utility room (19%), gym (16%) or hobby room (15%). Additional living space could add value to your property, however, the trade-off would be a secure garage space for your car.
Open-plan living space
From our professional experience, removing load-bearing walls and creating an open-plan living space is one of the most rewarding ways to add value to your property.
Home improvement insurance considerations
1) Should I inform my insurance provider about home improvements?
Yes. In fact, most people do not realise this until it’s too late.
2) Should I inform them of any particular home improvements?
Off the shelf, most insurance products will cover up to £25,000 of home improvements as standard, for instance, if you hire a painter and decorator at a cost of £10,000, you do not need to call your home insurer.
However, if any of the work is structural (removing a wall, installing stairs, extension) or involves the property not being wind and watertight (replacing doors), or if the property will be unoccupied during the works, then you must tell your insurer, regardless of the value of the works.
3) Should I tell the provider after the home improvements are done?
No! Before they start – this is a change of material fact and the failure to update your insurer could render your policy invalid.
Contact our friendly insurance specialist team to discuss your home insurance needs today!
Beware of the ‘ceiling price’ for your property
Keep in mind that properties have something called the ‘ceiling price’. The ‘ceiling price’ is the maximum amount anyone will pay for your property.
The ‘ceiling price’ is the maximum amount anyone will pay for your property and it could affect how much value you can add to the property, based on the following factors:
- Local market – the highest value a property has ever sold for in the past 5 years;
- Average house cost – the median house price for the area in which the property is located;
- Other location factors such as quality of schools, employment opportunities and local amenities;
In order to get a good idea of your ‘ceiling price’, you will need to research the above factors and compare your findings with what you know about the property. You may need to consult with a professional to get an accurate valuation.
