Moving In: Adding Value
So you’ve done it- the house is yours, you’ve moved in and started to make it feel like home but perhaps you’ve found some areas that aren’t quite working for you that you’d like to change. In this section of the Home Buyers’ Guide we’ll cover a whole host of improvements you could look to do to your house and importantly add value along the way.
Adding value to your property
The first thing you’ll need to know is whether or not it’s worth making improvements. So we’ll give you advice on:
- Which improvements add most value?
- Redecorating
- Low-cost ways to impress
- Paying for your home improvements
Getting the work done
Planning the work is one thing – getting it done is quite another. You’ll want to know who to ask, how to find them and what rates to expect. Therefore, this section introduces you to:
- Building contractor vs individual tradespeople
- Finding a tradesperson
- Quote vs. estimate
Which improvements add most value?
Home improvements could add real value to your property – some more than others. The main thing to think about is, make sure the basics are sorted in your house first if it needs it before starting a big project like an extension. It can also be really helpful to live in your house for a few months to really get to know how you live in a place and what parts you may want to change. This way you can get your priorities in order of what you may want to do to the place whilst adding that all-important value. There are many different options, but when adding value you always need to consider the cost of the work and ceiling price for the area for starters to help you work out what could be worth investing in.
Work done and the return on your investment is also dependent on the cost of land, quality of the work undertaken and location. There are plenty other budget-friendly things you can do, even a fresh coat of paint or new front door can increase curb appeal and really make a difference to the value.
Below we go through some improvements in more detail you could do to your home, and what you may need to consider to do them [1]:
Loft conversion:
- Often the easiest way to create an extra bedroom (or even an extra bathroom).
- An architect, structural engineer or builder will be able to give you an expert opinion on possible structural changes, such as strengthening floor joists or raising the roof (so you’ll be able to stand up), and make sure your plan is viable.
Adding an extension:
- Extensions vary widely, the key is to make sure it’s well thought out with the space, budget and what you are wanting it to achieve at the forefront of the design.
- An extension can provide more space in lots of different ways- whether you wish to add another bedroom or want to make your kitchen and living area one big open-plan space. Don’t forget that you’ll almost certainly need planning permission.
Installing an en-suite:
- Adding an en-suite might be a very smart move – especially if you have a large master bedroom which you’re adding it to. Do make sure space isn’t compromised in the bedrooms in order to do it as this could prove less valuable.
- If you have a tiny boxroom, it may be a good idea to consider converting this into an en-suite as long as you have at least three other decent sized bedrooms.
Opening up spaces:
- Knocking one or more rooms through could make a big difference at a relatively low cost. It is a very on-trend and desirable way of living for people today so don’t worry that about reducing the total number of rooms you have in your living space, it’s about it’s usability.
- Try to avoid load-bearing walls however as this can mean more budget is needed for supporting beams for example.
Bringing the outside in:
- This is a great way to add value and can be done on a relatively small budget. For example, add natural light to a room with glass doors, a skylight or an extra window to make it feel lighter and brighter.
- A garden room or conservatory is also an option to create extra living and entertaining space in the garden. Make sure you do your research and buy one of good quality and design, otherwise it could actually de-value your house.
Refurbishing the kitchen:
- Nowadays, the kitchen is arguably the heart of the home and one of the most important parts a prospective buyer will consider so is a great place to think about adding value.
- If your home features a ready-made, stylish kitchen, buyers might be prepared to pay more to save the time and expense of a re-fit. So try to keep it relatively neutral so that it will appeal to a wide range of buyers.
Planning Permission:
For a few of these improvements, you’ll need planning permission which does involve a fee. Don’t worry though, if you’re nervous about paying for planning permission in case it might be rejected, it’s worth having a dig around the local area. Look out for things like skylights on the roofs of other houses on your street and extensions as these are a good indication that other people have had planning permission accepted. Remember, there’s also no harm in knocking on a few doors and asking if they’ve had work done – and helps you make friends with the neighbours in the process!
Redecorating
Of course, you don’t have to make large-scale changes to your home to add value. A simple and cost-effective way is by redecorating.
The following are a good guide to some areas that could make a real difference to your home’s sale-value:
Increase ‘kerb appeal’
- First impressions count, and they start outside. So do an external makeover by freshening up masonry, woodwork and adding some greenery can often go a long way.
- Remember, though, that if you intend to do anything more radical than a tidy-up of old or worn surfaces (such as changing windows or porches) you may need planning permission.
Do a garden overhaul
- A great-looking garden works wonders, so make sure to get stuck in de-weeding and showing it off to its absolute best. Placing furniture in the garden can also help people visualise how they may want to use the outdoor space, which can be really helpful.
- If you’re in a crowded urban area where parking is at a premium, could you could add an off-street parking space to your property by paving over your front garden, if you have one? This could add to a substantial amount to your house value, but consider the cost of having the council drop the curb if needed.
Lighten up!
- Ensuring that your house is well lit is a cheap and simple, but often effective, way to add value to your home.
- Replace old and tired shades with new fittings to really help brighten the space.
- If you have any old halogen bulbs, think about updating these to LED versions as they will give off much more light. This can also be a good selling point for buyers as they are much more environmentally-friendly.
Revive your internal paintwork
- Fresh, contemporary paintwork sends a strong message to buyers, and could really affect your house value as it is a job they don’t need to worry about doing.
- Neutral colours are usually a more sensible option to go for, to appeal to the broadest range of buyers. But you could think about adding colour with artwork or statement walls in certain rooms for example for added personality.
Refresh your flooring
Making sure your flooring and carpets are clean and well-kept might pay dividends. Hiring a carpet cleaner or a professional cleaner is easy to do and could be worth every penny to give the right impression.
Low-cost ways to impress
There are some easy things you could do that don’t cost too much but might help you sell it at the price you want by giving buyers the best impression from the start. You could:
- Hang mirrors in tight areas to give the impression of a bigger space
- Fix squeaking or sticking doors
- Replace dirty or mouldy bathroom sealant
- Tighten dripping taps
- Make sure curtains and upholstery coverings are fresh and clean
- Fill cracks and holes in walls and window seals
- Replace cracked or loose tiles
Paying for your home improvements
Although some improvements could be made very cheaply, the ones that add most value are likely to require significant amounts of money. If you don’t have enough savings, or don’t want to use them, you’ll need to look at financing your improvements another way. We go through the most common types below:
- Adding to your mortgage
This is usually done over the remaining lifetime of your existing mortgage. The advantage over a personal loan is that you can spread the amount you borrow over a longer amount of time with a lower interest rate then you would usually get with a personal loan or credit card. The downside is that even though interest rates are usually lower, you can end up paying more in the long terms [2]. Always make sure you can afford the extra payments and clear any existing loans you may have. - Personal loans
These are usually over a much shorter period than the mortgage option (typically one, three or five years) and have higher interest rates. However, as you pay a personal loan off more quickly, the total interest paid may be less and having a good credit score can help you secure a loan with a low interest rate [3]. Another advantage of a personal loan is that the application process is simpler and so you’ll get a quicker decision. Also, a personal loan is unsecured, so your home is not at risk if anything goes wrong. - Interest-Free Credit Cards
If you are able to pay for works with a card, you could consider getting an interest-free credit card. Shop around to find the best deal for you but these are good if you can pay the balance off within the 0% interest time frame (usually up to about 2 years). While the rate of interest goes up significantly after this period, it could be worth looking into this if you want to spread payments or you know you’ll be able to get the money together at a later date [4].
Getting the work done
Unless you’re a skilled DIYer, you’d probably feel more comfortable finding a trustworthy tradesperson to carry out the work for you if you have a larger project in mind. The key here is to strike the right balance between service, price and quality. One of the first things to address, then, is whether it’s better to hire an established building contractor, or hire individual local tradespeople with a good reputation:
Building contractors vs. individual tradespeople
1. Building contractors
For some projects you may want to consider an established building or home improvements company if you have lots of jobs you’d like them to coordinate. This is often the more expensive option, but could save you a lot of time and hassle as you only have to liaise with one person who would take on the responsibility of getting the project done for you.
Being clear on what’s expected
It could be a good idea to not only discuss in full what you want, but to ask for a contract in writing before you give the go-ahead. This way, if the contractor doesn’t do what you agreed, you might have a better chance of getting your money back. Most professional contracts could also include start and finish dates, and what the contractor might do in the event of a delay.
2. Individual tradespeople
Hiring an individual tradesperson may be a cheaper than employing a building contractor and could be the best option if you only have a couple of jobs to do, or if you’re familiar with building works to an extent. This can also be a more time-consuming option as you would effectively be project managing your building work which can also add extra stress!
Doing the proper checks
Remember that it could be dangerous to employ someone who’s not properly qualified in their trade – especially if it’s for anything involving gas, electrics or structural work. One way of confirming they’re properly qualified is to check that they’re a registered gas engineer or registered electrician.
Your insurance – what to check
If you have buildings and/or contents insurance, check with your insurance provider that you’ll be covered during the work. If you’re not covered, you could investigate the possibility of adding it to your policy. You could also ask the contractor concerned if they have insurance to cover you and them in case someone’s hurt or property is damaged.
Overall, both options have their pros and cons which you need to weigh up. Look at what your home improvement project is going to involve, the different type of tradespeople you may need, your budget and the time frame you want it all done in to decide which option is best for you.
Finding a tradesperson
To find either a contractor or individual tradesperson, personal recommendations are always good to consider. It’s also worth taking a look at The Federation of Master Builders, Which? Trusted Traders or Trading Standards Buy with Confidence Scheme for registered tradespeople, qualified to carry out the work you want.
Quote vs. estimate
Remember that a quote is a fixed price – it tells you exactly what you’re getting and how much it could cost. An estimate is just a guess, so you could end up paying more.
And finally…
If you’ve read all sections of our you’ll know all the important steps in the house buying process, as well as many of the potential pitfalls. We hope we’ve helped you on your home-buying journey and wish you all the best with this new adventure!
Appendix
- Home Owners Alliance – How to add value to your home
- Money Advice Service – Increasing your mortgage – getting a further advance
- Money Saving Expert – Cheap Personal Loans
- Money Saving Expert – Best 0% Credit Cards – 1st June 2020
Additional Sources
- Citizens Advice – Before you get building work done
- CCPC – Hiring tradespeople
