Planning a home renovation project can be a great way to boost your house value and improve the marketability of your property. However, whether you’re planning a loft conversion, 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.
Home Renovations – 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, or, 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 would recommend commissioning an independent valuation from an RICS-accredited surveyor.
A RICS Valuer can give guidance on what kind of uplift can be broadly expected from a particular project, whether it’s redecorating, installing decking, or converting a garage or loft.
However, with this in mind, it’s important to consider the “ceiling price”…
Location, Location, Location! – 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 my project improve the value of my 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? Contact Walker Fraser Steele today and we can help you understand the value of your home.