Not everybody knows how much their property is worth – that is, until they come to sell. What’s more, valuing a property is not straightforward. Stephen McCarron of the National Association of Estate Agents (NAEA) says, “The golden rule is that a house or flat is only worth what a buyer is willing to pay.
A lot of research is needed if you are looking to sell. When it comes to deciding on your asking price, you need to choose carefully to avoid selling the property for less than it is worth. On the other hand, the price must be low enough to encourage potential buyers.
How can I boost the value of my home?
If you want to increase the value of your home, then a renovation, or even just a few tweaks, could be your answer. However, this should not be done lightly. Before embarking on an extension or a drastic kitchen refurbishment, it is vital that you do your research. If you are not careful, you risk losing money.
“The worst thing you can do is embark on a major project on a whim, without thorough research or planning. Chances are, it will leave you out of pocket.”
So, what are the recommendations?
Rule number one: Add space
Generally speaking, adding space increases the value of a property.“A property extension increases the market price of the average home by 15pc. This could be a garage conversion or a garden office.”
Some other options include refurbishing your loft space or even your cellar.
The average UK house, according to the most recent Land Registry figures, is worth £287,506. For a property of this value, converting the garage could add as much as £28,751 to the overall value, according to House Buyer Bureau (HBB). Similarly, converting your shed to an office could add £22,000 to the total value.
However, this depends on the quality of the extension. For example, a poorly designed conservatory could reduce the value of your property by £15,000.
Watch out for these features if you want your home to appeal to younger buyers:
Patterned carpets 15% of home buyers find patterned carpets to be off-putting.
Textured wallpaper More than one in ten do not like this feature.
Linoleum flooring One in ten buyers are not fond of this.
Artex ceilings 15% of potential buyers are put off.
Avocado-coloured suites Approximately 25% describe avocado-coloured bathroom suites as being a “complete turn-off”.
Pebbledash walls Nearly one in five would not buy a house with these walls.
Frosted windows Put off 14% of potential buyers.
Rule number two: Consider refurbishing your kitchen or bathroom.
Updating your kitchen or bathroom could be a worthwhile investment. Since the kitchen is the most valuable room, small touches such as new countertops or white goods could make a huge difference. A new bathroom could also bring in plenty of cash. For example, a new kitchen could add £15,813 to a house worth £287,506, while a new bathroom could add £7,475.
Rule number three: Maximise kerb appeal.
“Kerb appeal” describes the overall feeling that people get from seeing your house from the street. It is important that your house looks good from the outside because this is a potential buyer’s first impression. Therefore, making improvements that will increase your home’s ‘kerb appeal’ is a good investment.
These improvements can be straightforward, such as repainting the front of your house or fitting new windows (or at least having them thoroughly cleaned). Replacing the front door can also make a huge difference to the overall look of your house.
Tidying the front garden can also go a long way. According to HBB, landscaped gardens can add as much as £4,000, and sometimes more, to the value of your property.
Rule number four: Increase energy efficiency.
More and more buyers are willing to pay top dollar for a property with a high Energy Performance Certificate (EPC) rating.
Average EPC rating by property age in the UK:
Property age
EPC Rating
Pre-1990
E
1900-1929
D
1930-1982
D
1983-2011
C
2012 and onwards
B
“More buyers are asking estate agents for properties with an EPC rating of a C or above, so ensuring your house or flat is energy-efficient could make it more attractive. This is especially the case now that preferential mortgage rates are starting to appear for more efficient properties.”
You can increase the energy efficiency of your home by following the steps below:
Add double glazing This feature could add £8,625 to a property worth £287,506
Install an EV charging point This could add £5,000 (for a property of the same value as above)
Some other improvements you can make include draught-proofing, buying A-rated appliances, improving your insulation, and adding remote-controlled thermostats.
Energy efficiency measures and how much they cost:
On a budget?
Don’t worry! There are plenty of less expensive ways to boost the value of your property. These include repainting, deep cleaning, and getting rid of clutter. These might seem insignificant, but they can have a huge impact on how potential buyers perceive your property.
What factors affect the pricing of a house?
The main ones are:
Location of the property
Both the asking price and sale price for similar properties in the area
Size of the property
Condition/state of the property
However, the property’s value is determined differently depending on if you are trying to buy or sell it.
For example, if you are selling the property, you would normally use an estate agent to help you determine the value. “Valuing comes down to the experience of the agents involved, looking at comparable evidence, and taking into account what the property is worth to the individual.
“When it comes to ‘value’ I tell sellers there are normally three prices: what the vendor wants, what it’s worth, and what you have to pay to buy it. Very rarely are these three all the same.”
However, determining the value of a property is very different in the case of a buyer wanting to purchase a home with a mortgage. In this scenario, a lender would carry out a valuation to achieve an estimate. This must be done by a bank or building society to ensure that the home is worth the price that the buyer will pay for it.
Buyers can also arrange a survey. If this happens, the surveyor can give their opinion on the value. If there are any problems with the property, such as structural issues, they might suggest that the property is worth less than the asking price.
What is a realistic asking price for my property?
Property portals are a good way to find out what your home is worth. These can be used to find homes that are similar to your own.
If you can see how much similar properties have sold for in your area, you can get a good idea of the kind of price you should be aiming for.
How does this tool work? You might be asking. It uses data from the Land Registry, along with up-to-date local information.
The simple option is you can ask us to value your home, call us at one of local prices where our team are ready to help.
