Find out how to maximise your house sale profit through adding value.
Thinking of selling your home? Property prices in the UK have risen considerably recently. This is as a direct result of the stamp duty holiday introduced by the government last year, in response to the COVID-19 pandemic.
The stamp duty holiday which was introduced last year by the Chancellor has been extended until 30th June. This means that there is no stamp duty payable on homes valued between £125,000 and £500,000. As well as this, first-time buyers are not expected to pay stamp duty on homes up to a value of £300,000, and landlords and second-home buyers are similarly exempt. Buyers would have previously expected to pay up to £15,000 in stamp duty which would have been paid to the government.
There has also been a new initiative recently introduced which allows lenders to approve 95% mortgages from April, meaning that people will be able to buy a new home with just a 5% deposit.
With the property market offering so many different incentives, this could be the perfect time to sell. But wait! Could you boost your home’s value before you sell?
What is adding value?
Adding value to your home means anything from a small-scale, to a full renovation to maximise your returns. The term encompasses anything that could increase the value of your home, meaning that you receive more cash in return. We would recommend having an up to date evaluation before starting any work. This will allow you to keep an accurate record of the initial evaluation, the amount spent, and the final evaluation.
Adding value will increase your yield, and will also often create more space in your home. For example, some of the renovation ideas listed below convert unused spaces into liveable areas.
Our recommendations for adding value
Adding a bathroom into your home can have the potential to add up to 5% to the property value. Often buyers can be put off if a home has a limited number of bathrooms, so it is worth considering if you can afford to install a new one.
- Loft conversion
A loft conversion is incredibly popular, and could be the ideal way to create more space as well as adding a lot of value to your property. Quite often loft conversions will not need planning permission, but it is worth checking with your local authority. Expect to consult an architect or builder on your plans to make sure that they are feasible in terms of ceiling height, lighting and accessibility.
- Cellar conversion
Converting a cellar into a usable living space or additional storage space is a popular choice, and one that probably doesn’t need planning permission. The majority of the work will be waterproofing the space to avoid moisture and mould building up. This will make your cellar comfortable and habitable for however you will use it.
- Outdoor space
Don’t forget about your outside space! Even if you only have a small area, this can be maximised. Install a deck or patio if you have the space. If not, remember to keep up with maintenance on the exterior of your property, for instance do any of your exterior walls need a fresh coat of paint? Remember that first impressions are so important, especially when it comes to property viewings!
If you have limited funds for renovation
If a large scale renovation isn’t on the cards for you, remember that you can make significant changes to your home by changing the fixtures and fittings too. Your kitchen cupboards or bathroom can easily be updated by choosing modern matt black fittings. This is the quickest and cheapest option for ensuring your home is as desirable as possible to potential buyers.
Other options for quick and easy ways to add value include updating the windows, ensuring that your home is as energy efficient as possible, or just giving your home a bit of TLC with a fresh coat of paint. The possibilities are endless, even when you’re on a tight budget.
It is worth remembering that in order to get money out of your house sale, you need to put money in. Once you have a valuation of your home, devise a budget for any renovations that you want to do and stick to it. This will ensure that you are not overspending, and losing money overall.
If you have any more reservations speak to us today about how we can help you to make the most out of your home. Visit our website to book a free consultation or send us an enquiry outlining your requirements.