Renovating and refurbishing homes is a great way to increase value. Whether you’re a first-time homeowner in a relatively newly built apartment or someone who’s been in the market for a while and owns a much older home that needs more work, there’s a lot to be said in renovating for value. But, there are many questions. Which rooms should I renovate to add value? What should I do to them? How can I afford renovation on my already expensive home? If you have any of these questions, you’ve come to the right place as we are going to try and answer all of them for you.
Let’s discuss renovation and the most important parts of your home to renovate if you want to increase its value.
What is Renovation?
First of all, let’s discuss the renovation itself. What is it? Why do it? Renovation is a nice word for decorating, doing up, repairing, or replacing bits of your home. The word renovation is especially relevant if you are talking about a huge overhaul. For example, say you’ve purchased a house that’s had one owner for 50 years and hasn’t been decorated since 1986. It’s a bit dilapidated and old, so you are going to replace almost everything in it and bring it into the modern era. That’s a true renovation.
But, for the purposes of this article, we will also be referring to parts of the home that are just a little tired or maybe haven’t been updated in a few years. We aren’t exclusively talking to those of you with houses that look like they’re still in black and white!
Refinancing To Renovate
A big question many people will almost certainly have is, “how can I afford this? Won’t it cost a fortune?” Well, depending on the scale of the task at hand, the price will obviously vary! For smaller jobs like painting and decorating, just save up a bit of cash and make sure you can afford it.
For bigger jobs, the best option is refinancing. “What is refinancing?” you ask; well, these meerkat characters state, “Refinancing is when you renegotiate your current home loan, or you take out a new home loan with another lender. The aim of refinancing is to either increase the amount of your loan or secure a lower interest rate to reduce your monthly repayments.” With this increased amount on your loan, you can release the capital to renovate.
But, How Will I Make Money?
Great question. There is a little bit of estimation of figures involved when you renovate. You can always ask an estate agent or valuation expert to help you here. Basically, you need to work out two things. First, how much it’s going to cost you to renovate. That’s the total cost, including any refinancing loan, interest, materials, etc. Then, you need to figure out how much value that could add to your property. This is where help from the experts could be useful.
A good estate agent will be able to give you an estimated valuation pre and post-renovation. This way, you can work out the balance. Are you going to make a profit by spending £5,000 on renovations? Well, if it adds £15,000 to the value of the home, you’ve just made yourself £10,000! Simple maths, really, as long as an expert agrees with your valuations.
Bathroom
One of the prime rooms for renovation is the bathroom. Many homes have bathroom suites that have been in place for years. This can seriously take value away from the home as most buyers prefer the look of a modern, fresh, and new bathroom. Bathrooms can be expensive if you want to renovate to a high standard, but the added value can also be high, especially if you can make the bathroom bigger. Bathrooms have often been made to be the smallest rooms in our homes, despite most people preferring a spacious bathroom. If you can extend and install a new suite, you should add good value to your home.
Kitchen
According to research done by Nationwide building society, a brand new kitchen should increase the value of a home by around 6 percent. This is obviously variable depending on the size and value of your house, but 6 percent was the average price increase when homeowners installed a new kitchen. It is also possible to upgrade a kitchen without spending too much money. Appliances such as ovens, fridges, and washers can all be quite expensive.
But, if you simply upgrade cupboards and worktops, you can give the impression of a brand new kitchen without having to spend much money at all. This is a great hack for selling your house, as some simple upgrades can make a huge difference to the first impression of potential buyers.
Bedroom and Living Rooms
Outside of the bathroom and kitchen, there are potentially only smaller gains to be made in value, as there are fewer utilities and expensive changes to be made. However, it is still worth considering bedroom and living room upgrades before selling. Ensure that your walls are repainted neatly. Consider a light neutral color, which can help make the room look larger. Another simple upgrade would be to put new blinds or curtains on the windows. Old, tired curtains can make a room look quite dated, so a simple upgrade here can make a massive difference to the perceived value of the home. People like new!
Garden
A quick note on any outside space you may have at your home. Whether you have a balcony, terrace, or full garden, it is worth a look at. Some simple landscaping, new plants, or furniture can make your garden look brand new. People tend to gravitate towards gardens that look easy to maintain, so keep that in mind.
So, there are plenty of options for renovation to increase the value of your home. Consider refinancing to help turn some great profit. Whichever parts of the home you choose to renovate, we are sure you will be able to add value and make a sale. Good luck on your renovation journey.