3 Ways to Increase the Market Value of Your Property
,Considering the market value of property is essential if you are looking to move homes. A number of features and renovations can maximise your home’s value before you put it on the market.
In this article, we take a look at how to calculate what your property is worth, what can make it more appealing to buyers and the things you can do to increase the market value of your property.
How to Calculate the Market Value of Your Property?
If you’re looking to add value to your property, the first thing you’ll need to do is understand its current worth. The value of your home is the price another buyer is willing to pay for it – also called the home’s current market value.
Knowing the market value of your home will help you to determine its asking price when you list it for sale and can also help you to understand the type of new home you can afford if you want to move up the property ladder.
What Affects the Value of a Home?
The value of your home can change depending on a number of things. Here are a few of the top factors impacting the value of a home:
- Location
When it comes to property, location is key. The more desirable the location of your home, the higher its value is likely to be. Homes in neighbourhoods with low crime rates and those close to amenities like shopping centres, restaurants, schools and public transport can all increase a home’s desirability and raise its value.
- Size, Layout and Condition
The number of bedrooms, the layout and whether you’ve recently had the house decorated, updated the appliances or refurbished the home can all raise its value. As a home seller you can look at recently-sold houses of comparable layout and in similar condition, which can give you an idea of what you may get for your property.
- Schools
Homes located in catchment areas for good schools are often in high demand which can significantly increase the value of your home. For families or couples, in particular, the quality of nearby schools is likely to be a key consideration of the house they will choose.
- The Market
Current market conditions will affect the price of your home. When there are more buyers than houses coming onto the market, property prices tend to increase. Other market conditions like interest rates, which affect the costs of mortgages, will also affect the activity of the property market.
How Can I Find out the Value of my Home?
Here are three of the most common ways to evaluate the value of your home or the market value of a property:
- Do your own Research
If you want to evaluate the price of your home yourself, you’ll need to conduct extensive research. You’ll need to find out the price of local properties in the area that are similar to yours and the price achieved in recent sales. It’s also important to be aware of any investment projects taking place in the area – things like improvements to public transportation can rapidly boost the price of a property.
- Online House Valuations
An online property valuation can give you a more accurate estimation of the market value of property. Usually you’ll need to input data like the number of bedrooms, the age of the property, its type – whether detached, semi-detached or terraced etc. – and postcode alongside other home specifications. Online tools will use an algorithm to cross references a number of data points, calculate the property’s value and send you a detailed report to your inbox.
- Hire an Appraiser or Estate Agent
Professional appraisers will tell you the exact price of your property. Appraisers are efficient, highly experienced and usually offer a fast turnaround time of 4 to 48 hrs. Appraises will charge a fee for the service of conducting a valuation of property.
What Increases the Market Value of a Property?
Every property owner seeks to increase the value of their home, particularly right before listing it on the market. There are plenty of home improvements that do not add value in the UK, but there are also quick wins and more comprehensive renovations that can add value:
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Quick Wins
Redecorate
The market value of property can be increased with small but impactful changes. One of the easiest and most cost-efficient ways to increase value of property is to add a lick of paint. It’s important to not over-personalise the décor so it appeals to future buyers. This will allow them to adapt the property to fit their own needs. Neutral colours are appealing to most buyers and can give your home a new lease of life for little cost.
Refresh Kitchens and Bathrooms
Kitchens and bathrooms are often a main focus for buyers. While you might not need to install a completely new kitchen, painting units and refreshing handles or doors can make a huge difference. The same goes for bathrooms. Refreshing the grouting, eliminating limescale and adding a glass shower screen are all relatively low-cost improvements that can help you to sell faster and see property value increase.
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Larger Projects
Larger renovations or improvements to properties such as loft or garage conversions or adding a conservatory can deliver huge rewards in terms of a boost in return. Any improvements that add a sense of privacy or space and give a great first impression can increase saleability, too.
What do Home Buyers Want in 2022?
The pandemic created a shift in the amenities home buyers are looking for. Now additional rooms and outdoor space make properties more appealing. In 2022, when considering the market value of property, here are some of the most appealing features that home hunters are looking for:
- Open plan
Open plan is still one of the most sought-after home styles in 2022. Buyers still look for openness between the kitchen and dining room or kitchen and the family room.
- Space
Health and general wellness became a key consideration during the pandemic and buyers are placing greater value on their wellbeing. Buyers are keen for areas that can be used as a home gym and yoga or meditation room.
When it comes to space, bedrooms are just as important as living areas. Buyers are looking for decent-sized rooms for both their children and themselves. With the work-from-home trends staying steadfast after the pandemic, buyers are looking for study spaces or extra rooms that can be used as a home office.
- Sustainability
With rising energy prices and climate change on the minds of many, buyers are looking for houses that are sustainable and built for efficiency. More than ever, buyers are interested in the materials used, the energy efficiency of items like heating and lighting and what they can expect their energy costs to be each year.
- Outside Appeal
Maximising the appeal of your outdoor space can work towards adding value to your home. Adding decking or a patio can boost its appeal. Also making sure the garden is well cared for and has privacy can help to make it more appealing.
What adds the most market value to a Home 2022?
While there are many ways to increase the market value of your property, here are three ways that add the most value:
- Cellar Conversion
If you’re lucky enough to have one, transforming a cellar into a living or storage space can hugely boost the value of a property. Sometimes even by up to 30%. Converting a cellar can be one of the least complex renovation projects to undertake. Cellar conversions usually fall under “change of use” for planning purposes. This means you don’t need planning permission.
If your home doesn’t have a cellar, it’s possible to dig down to add square footage. Having said that, many specialists in engineering and waterproofing have emerged in recent times. Even more so as this type of conversion becomes more popular. Cellars can be converted into extra living space, a cinema room or another type of entertainment room. All for the purpose of boosting the value of your property.
- Adding an Extra bedroom with a Loft Conversion
Looking for the best way to add value to a home? Loft conversions are highly sought-after by buyers. Adding an extra bedroom with an ensuite to converted loft space can add about 15% value to your home. Although you’ll need to look into planning options, either with an architect or builder. Many loft conversions, such as rooflight loft conversions, can be done with minimal structural work.
Another loft conversion option is a mansard conversion. Although it is more expensive. As one of both slopes of the roof are replaced with a new structure and almost flat roof. Mansard conversions usually need planning permission. Nevertheless, most loft conversions are considered a “permitted development”. So you may not need to apply for planning permission. It’s best to check the rules with your local planning department.
- Increase Living Space with a Conservatory
Merging indoors and outdoors can help to boost the market value of property. Fully glazed conservatories can add a great lifestyle element to any property and are often permitted by building regulations. Conservatories can add around 10% to the value of your home.
As buyers are looking for homes that are more energy efficient, be sure to consider the material of your chosen conservatory. uPVC, timber and aluminium frames all have different properties. So you should ask the construction company for advice before beginning any project. If you remove doors or walls linking the conservatory to your house, you’ll need to prove that the conservatory is as energy efficient as the rest of the house.
Adding a conservatory is a permitted development, meaning it doesn’t require planning permission, but certain conditions apply. While most conservatories are exempt, in some cases you will need to submit for planning permission.
If you already have a conservatory, you can add value to your home with a tiled roof. This will transforms it into a room you can use all year round.
If you’re looking to increase the market value of property, from updating the decor to undertaking large-scale renovations, there are plenty of things you can do to boost its value before listing it on the market. To find out more about increasing the value of your property, get in touch with our property experts today.