Putting little effort into improving your home can significantly increase the value of your house. There are hundreds of things you could do – from simply reorganizing the internal layout of the property to completely redesigning and redecorating it. Depending on your time and budget, you can fully transform your house and sell it for much more than you have originally purchased it for. But how much time and funds can most home owners really invest into their home before selling it? Is it really worth fixing every single issue, no matter how minor it is and will your efforts actually pay off? Maybe.
Hidden problems have been affecting the property sale completion. Once an estate agent has agreed a sale with the home owner, it most likely involves a house buyer using a mortgage to purchase the property. In most cases, the solicitor who represents the purchaser is also the mortgage lender the buyer is using. Once the buyers have chosen and instructed their solicitor, they will request a copy of the contract draft and your property will be searched by a conveyancer for any issues the buyers should be made aware of. Here is a list of problems you simply can not ignore and need to fix before you list your home for sale. To increase the value of your home, tackle the following common problems
Conveyancers are very likely to under valuate your home if during their check they discover damp issues, structural problems, dry rotting, electrical issues and dangers, subsidence. Ensuring that all pipes and electrical wires are in good condition prior to the survey will help avoid unexpected price reductions and maintain or increase the value of your home. These issues could be one of the most expensive ones to fix, but they are also a crucial factor which determines whether you will get the best price for your home. At We Buy Any House we always advise to look into structural, electrical and other issues which may arise during the survey. Please remember that upon completion of some plumbing, layout and electrical works, the owner must obtain a completion certificate. This document is to prove that all work carried out is to the standards of the Building regulation department of the local council.
Property searches / lack of building regulations
To obtain building regulations, an inspector needs to visit the property before and during the works. If there isn’t a completion certificate, the best thing to do is get a building regulation indemnity insurance. This is the fastest and cheapest way to tackle the issue with building regulations. Please bear in mind that if the local council has been notified about missing building regulations or completion certificates by either seller or buyer, the regulation indemnity insurance becomes invalid. Such policy consists of a single payment, which varies between £100 – £400, depending on the value of the property. Indemnity insurance covers the lack of building regulations for any types of work carried out on the property – from rewiring to adding a kitchen extension. Taking such insurance policy might speed up the sales process and increase the value of your house
Title problems / conveyancing / length of lease easements / defective title issues
Conveyancers may find the property value is lower than you would have expected due to the length of lease, defective title issues and title problems. Before you proceed with listing your property for sale, check if you could buy the property freehold, what your leasehold says about the ground rent and what you can do to extend your lease.
Increase the value of your property by resolving all occupancy and tenancy disputes
Having sitting tenants could complicate selling the property, as some buyers may want to move in right away. You may not want to loose monthly rent income, however having tenants reduces the value of property.
The listed above issues are the main causes of final price reductions. To increase the value of your property, we strongly suggest you resolve any structural issues, tenancy disputes and sort out all legalities around your property. Alternatively, you could quickly sell your property with us. We Buy Any House’s dedicated team can arrange a cash sale within 7 business day, pay all legal fees and handle the whole process for you, saving you time,stress and dealing with estate agents and buyers. We offer tailored property sales for every home owner – get in touch to discuss the most suitable sales option or continue reading to see how you can improve the value of your property.
Give your house a makeover
If you are not in a rush to sell and have available funds to reinvest in your property, you could increase its value by renovating your home. For instance, fixing leaks, plumbing issues and expanding the kitchen could add thousands to your bank account once you complete the sale. Be cautious when choosing this route, as you may loose money if you over-improve your home. Make a list of all improvements you could do to your home and choose the ones that would take the least time and money and increase the value the most – such as upgrading the bathroom and kitchen, instead of investing in a huge jacuzzi.
Aim for subtle and timeless improvements to add value and universal style to your home. Avoid spending a lot on the latest fashion trends and luxuries, basic home maintenance should be your priority. High-end kitchen appliances are a benefit everyone would love to have in their new home, but a leaking roof or damp in the basement could easily devalue all the effort and money you spent on your new home.
To determine what your profit would be and whether your planned upgrades are worth the time, money and effort use the following equation
Estimated selling price – (the cost of your improvements +your cost to selling) = Your profit
The estimated selling price is what you will receive for your home – this may be below the market value and below your asking price. The cost to selling your property includes everything from paying for listing, estate agents to moving out and money to spend on your new home.
Choose your home improvements wisely – if your home with worth £100,000, there would be no point in spending £20,000 on a brand new bathroom. Consider the neighborhood you live in when planning any home improvements. It will most probably not pay off investing a small fortune on luxury interior if the other properties in the neighborhood don’t have the same standard. Bear in mind that sometimes investing £15,000 on the kitchen or bathroom could add £20,000+ to the agreed price, depending on the area you live in. However, if your property has 3+ bedroom and a small kitchen and only 1 bathroom, consider expanding the kitchen or adding another bathroom instead of improving the existing ones. Expanding your house by adding more rooms can drastically affect the property value.
“More than 70 percent of buyers who purchased existing homes knew what they were going to remodel before they even closed on the deal, according to HanleyWood’s Housing Continuum Study, conducted in 2002 in conjunction with Harvard’s Joint Center for Housing Studies. The same study showed that 30 to 40 percent of buyers of existing homes made home improvements within six months after purchase.” says Ron Phipps in an interview.
Add Curb Appeal
How your house looks on the outside is crucial to its value. Make sure your front garden is mowed and your home appears welcoming and maintained. It might be worth refurbishing the front door and painting the house or planting a tree. Your house needs to look better than your neighbors’, however avoid doubling the house value. Potential buyers looking to spend £500,000 on property are very likely to purchase a home in a neighborhood with an average house value of £250,000.
The value of your home does not end with your property – its surroundings can greatly affect its value. While you have no control over the infrastructure and geographical location, you can positively influence your neighbors and increase the house value of the whole neighborhood.
By Kristiana Georgieva