Does renovating a house add value?
Planning a home renovation project can be a great way to boost the value of your property and improve its marketability. But whether you’re planning a loft conversion, a conservatory or opening up living areas, it’s important to think through any potential renovation project carefully to ensure that the time, effort, and money invested makes good financial sense.
The business argument
It’s worth noting that having approved planning permission for a project can work in your favour when you’re looking to sell your home.
Firstly, make sure you’ve established your baseline, in other words, the value of your property today. Estimates from websites can be helpful as a broad guideline but for a reliable valuation, we recommend commissioning an independent valuation from an RICS-accredited valuer.
A RICS-accredited valuer can give you guidance on what kind of uplift can broadly be expected from a particular renovation project, whether it’s redecorating, installing decking, or converting a garage or loft.
But it’s also important to consider the ‘ceiling price’…
Ceiling prices explained
The ceiling price of a property is the theoretical maximum price that your property can achieve. In other words, a threshold that savvy home buyers won’t go over, no matter what you do to your property. This is dictated by factors wholly outside of your control – such as your neighbourhood, availability of local amenities and transport links, greenery, and schools. Therefore, understanding the context of the local housing market, land value and desirability is critical in order to make informed decisions about renovations.
It stands to reasons that, if the value of your home is already at the ceiling price, it will be more difficult to recoup your renovation investment.
So, will your project improve the value of your house?
The short answer is probably. Modernising properties, installing luxury mod-cons and enhancing décor can all help to increase the value of your property. However, when considering the cost of a project – it’s always a good idea to seek expert advice by consulting with an RICS-accredited surveyor. It’s also prudent to liaise with local estate agents to help you understand the local market.
Looking for advice? Our Independent Valuation Reports can help you understand the value of your home.