As a homeowner, it’s only natural for you to want to ensure your property is worth as much as possible. It is, after all, as much of an investment as it is a family home. Whether you plan to sell your home soon or just want to improve its overall value, investing in home improvements can be a great way to add significant value to your home.
But not all improvements are going to be worth the money when it comes to adding a few extra thousand pounds to that asking price. Even though some of the more exciting home improvements and renovations might align more with your personal preferences and offer an aesthetic boost, they might not necessarily add much in the way of value.
With that in mind, we’ve put together a home improvement guide that should allow you to view the project from a more objective perspective. Here, we will explore 10 home improvements that will add value to your home and offer a range of tips to help ensure that your investment is worthwhile.
How to decide which home improvements are worth investing in
Making home improvements can be a great way to increase the value of your property, enhance its functionality, and improve your overall quality of life. However, not all home improvements are created equal, and some may end up costing you more than they’re worth. That’s why it’s crucial to consider a few key factors when deciding which home improvements are worth investing in.
Return on Investment: ROI is the amount of money you can expect to recoup when you sell your property. For instance, if you spend £10,000 on a home improvement project that increases your home’s value by £15,000, you’ll have a ROI of 50%. While it’s impossible to predict the exact ROI of a home improvement project, you can get a good idea by looking at similar properties in your area that have undergone similar upgrades.
Market Demand: While some upgrades may increase your home’s value, they may not necessarily make it more attractive to potential buyers. For example, installing an expensive home theatre system may be a great addition for you personally, but it may not be an attractive feature for a potential buyer,, it might even put them off. Instead, focus on upgrades that have a broad appeal.
Maintenance: Some upgrades may look great and add value to your property, however, they may also require a significant amount of upkeep and maintenance. For instance, a lush garden may be beautiful, but it will require regular watering, fertilising, and pruning. A swimming pool, meanwhile, might seem impressive on paper but could look like a massive headache for prospective buyers.
Budget: It’s important to determine how much you can afford to spend on a home improvement project before you start. This will help you avoid overspending and ensure that you get the most bang for your buck. You can also look for ways to save money, such as doing some of the work yourself or using more affordable materials.
Ensure that your home improvements increase the resale value of your home
Hire a professional: While DIY projects may be cost-effective, they can also be risky and time-consuming. A professional contractor can provide expert advice, help you avoid costly mistakes, and ensure that the work is completed to a high standard. Additionally, a professional contractor can provide warranties or guarantees on their work, giving you peace of mind.
Choose quality materials: Opting for cheaper materials might save you money but they may also end up costing you more in the long run. High-quality materials, on the other hand, can add value to your home, make it more attractive to buyers, and last longer. Additionally, high-quality materials can increase energy efficiency, which can be a significant selling point for potential buyers. Remember to stay on top of maintenance too as improvements will not increase your home’s value if they are not properly maintained over time.
Think long-term: Some upgrades may be trendy or fashionable right now but might not necessarily stand the test of time. Instead, focus on upgrades that are timeless, functional, and practical. For example, a modern kitchen or updated bathroom is likely to appeal to potential buyers, regardless of the latest trends. Additionally, focus on upgrades that will require minimal maintenance or upkeep, as these will be more attractive to potential buyers in the long run. Also, make sure you obtain any necessary permits before making improvements to your home as skipping permits can cause problems when it comes time to sell.
Don’t overdo it: Upgrades and renovations can add value and appeal to your home but too many can be overwhelming and costly. Instead, focus on home improvements that are within your budget and will add the most value to your home. Additionally, ensure that your upgrades are consistent with the style and character of your home, as this will make them more attractive to potential buyers.
Ensure you have enough budget for your home improvements
Get quotes: One of the first steps you should take when planning a home improvement project is to get quotes from multiple contractors or vendors. This will give you a clear understanding of how much your project will cost and help you avoid any unexpected expenses. When getting quotes, be sure to ask for a detailed breakdown of costs, including materials, labour and any additional fees.
Set priorities: While it may be tempting to tackle everything at once, it’s often more practical and cost-effective to focus on the most critical areas first. Consider which upgrades will add the most value to your home or improve your quality of life and prioritise those. Additionally, be realistic about what you can afford and don’t be afraid to scale back your plans if necessary.
Consider financing: If you’re struggling to come up with enough budget for your home improvement project, you may want to consider financing options. Consider financing options such as homeowner loans or taking out a fresh line of credit, however, before you commit to any financing options, be sure to carefully review the terms and conditions, including interest rates, repayment terms and any fees.
The 10 home improvements that will add the most value to your home
1. Kitchen remodel: The beating heart of the home. A modern, updated kitchen can be a major selling point for any home as it’s where the family is going to be spending a lot of their time. An affordable kitchen remodel doesn’t need to include brand new appliances as many buyers might choose to bring their own. What it can include, however, is new countertops, cabinets, appliances and flooring.
2. Bathroom remodel: Bathrooms are perhaps the rooms in the home that will require the most frequent updates as tastes can change so dramatically over time. Upgrading your bathroom with new fixtures, lighting, and modern finishes can be a great way to add value to your home. A bathroom remodel can also involve adding more space or converting unused areas to create an ensuite or walk-in closet, depending on your budget and goals.
3. New roof: A new roof not only adds to your home’s curb appeal but also improves energy efficiency, making it an excellent investment. It’s certainly a large investment but it can significantly improve the appearance of your home while also enhancing its functionality. A well-maintained roof can also prevent leaks and water damage, which can lead to costly repairs if left unaddressed.
4. Landscaping: First impressions are important, and your home’s exterior is the first thing potential buyers or visitors will see. A well-maintained and attractive front garden can significantly increase your home’s curb appeal, making it more appealing to buyers and adding value to your property. This can range from adding new plants and trees to installing a water feature or outdoor lighting.
5. Energy-efficient upgrades: Energy-efficient upgrades can make your home more sustainable, reduce your energy bills and increase your home’s value. These upgrades can include adding insulation, upgrading to energy-efficient appliances or installing solar panels.
6. Room additions: Adding extra rooms, such as a home office, spare bedroom, or additional living space, can significantly increase your home’s value. This can involve extending your home or converting existing spaces such as the loft or garage into usable rooms.
7. Basement finishing: Outdoor living spaces are becoming increasingly popular, and adding a deck or patio can significantly increase your home’s value. This can be a simple addition such as a small deck or an elaborate outdoor living space complete with an outdoor kitchen, fire pit and seating area.
8. Deck or patio addition: Adding some decking to your garden space or a patio out the front of your home can give it a whole new atmosphere and truly boost its curb appeal.
9. Painting: A fresh coat of paint can give your home an instant facelift and significantly increase its value. Choose neutral colours that appeal to a wide range of potential buyers.
10. Flooring upgrades: Upgrading your home’s flooring can make a significant difference in its overall appearance and value. Replacing old carpet or outdated flooring with modern and durable options like hardwood or tile can add significant value to your home.
Taking out a secured loan for home improvements
Taking out a secured homeowner loan can be an effective way to finance your home improvement project, whatever it might be. With a secured loan, the lender uses your home as collateral, which means that you can typically borrow larger amounts of money at a lower interest rate compared to unsecured loans. However, it could result in you losing your property if you fail to keep up repayments, so it’s important to evaluate the pros and cons ahead of an application.
This type of loan can be particularly useful if you need to fund major home improvement projects. However, it’s important to carefully consider your budget and options before applying. Get in touch with us at Pepper Money today to learn more.