Property is likely to be the biggest investment any of us make in our lifetime, and it’s a decision none of us want to get wrong. Your property value, in the long run, has the potential to increase your net worth and give you more freedom as you move up the property ladder, or approach retirement.
Property value refers to the estimated market worth of a piece of real estate, such as a home or a plot of land. This value is determined by several factors including location, size, condition, and recent sales of comparable properties in the area.
Changes in property value can have a significant impact on a person’s financial situation. If the value of a property increases over time, you may be able to sell it for a higher price, potentially providing a significant financial gain which can create many opportunities.
There are several tried and tested methods you can use today to improve the value of your property and we explore five of the best here.
1. Renovate or Remodel
Renovation ranges from simple fixes and redecorating to fully updating several rooms in your property. Updating your kitchen, bathrooms and living areas can help to significantly improve its overall value.
This includes installing new appliances, countertops, and fixtures, as well as painting and replacing flooring. A new kitchen is estimated to add 10% to the resale value of your house.
Smaller properties may benefit from an extra room. Adding a bedroom, office or a media room can provide more living space and increase the property’s value. This can be especially important if the property is in an area with a high demand for family homes or expecting parents.
2. Adding a Garage
Adding a garage to a property can significantly increase its value and improve its overall appeal to potential buyers – by 5-10% for a single garage. Garages provide additional storage space, not only for vehicles but for tools and other items too – storage features consistently highly on the lists of buyers’ priorities.
Adding a garage to your existing property needn’t be as costly as you might first imagine. Quonset garage kits are an affordable and attractive solution that can be completed in a fraction of the time of other traditional building methods.
3. Enhanced Curb Appeal
Curb appeal is a term used by those in the real estate industry to describe the attractiveness of a property as seen from the street. Enhancing curb appeal can be as simple as raking leaves and pruning hedges to bigger steps like the addition of an aforementioned attractive garage.
To enhance the curb appeal of your property, consider touching up tired exterior paintwork and adding some pot plants to your building’s entryway. Landscaping your front yard and planting new trees also falls under the same umbrella term. Curb appeal is especially important to potential buyers since you only have one opportunity to make a good first impression.
4. Increase energy efficiency
A less immediately impressive method but an effective one nonetheless is to install energy-efficient appliances, windows and insulation. This can help lower utility bills, which is a major selling point for potential buyers.
5. Add Outdoor Space
Adding a deck, patio or outdoor kitchen can create a great gathering place for friends and family. It can also increase the property’s value by up to 10%, adding more usable space and creating a more desirable outdoor environment. Methods like this help prospective buyers to imagine their life at your property.
Homeowners should also note that there are a number of factors that can also lower their property’s value. Older properties sometimes require a lot of work to modernize them, and this can have a negative impact on their value.
There is such a thing as doing too much. Over improvement happens when, in an effort to squeeze maximum profit from a house, some renovators feel compelled to install the very best appliances and high-end features. Properties with features or finishes that are too expensive for the local market can be difficult to sell and decrease in value.
Making home improvements can be a great way to increase its market value, make it more attractive to potential buyers while also improving your own standard of living. By making some small – and some large – alterations you can increase the value of your property and potentially increase your return on investment.