Easy Ways To Cripple Your Home Equity

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Why do you want to remodel your home? Is it a vanity job or are you aiming to increase the value of your house. If you chose the second option then it’s time to look at the projects that will add little to no value to your house price.

We’ve been bombarded with television programmes showing us how to upgrade our des res but what really counts? Here’s a list of 6 areas not to upgrade if you want to save money.

Forget the facade

It’s safe to say that a new facade for your home isn’t massive business in the UK. But, if you’ve decided the exterior of you home could do with a refresh you need to bear a few points in mind: and ask yourself a few questions:

Style: What sort of style do you have in mind? You may like it now but how will it look in 5 or 10 years time?

Consider your local area: Will it fit in with other houses in the surrounding area. A house that looks out of place may not be the most attractive option to a potential buyer.

Profit versus loss: If you’re going to put more money in than you get out then forget the new facade.
For many houses, some re-pointing and a simple lick of paint will be more than enough to breathe new life into your house.

You want a swimming pool

You might want a swimming pool but do your potential buyers? The thought of lounging poolside, Pina Colada in hand, on a hot, sunny day is appealing to you. But not everybody thinks the same way. Before you rush out to get the pool builder in, consider these questions:

Maintenance costs: Maintaining a swimming pool isn’t cheap. Can you afford it? Could a potential buy afford to maintain the pool? This alone could be enough to lose you the sale.

Do you need it: Do you really need a pool in your garden? Will you local pool suffice? How often are you going to use your pool? Could your money be better spent on a fish pond?

Safety considerations: Who is going to use the pool? Will it be for you family only or are you expecting gusts? Will young children be using it? Can you afford to be sued for an injury that occurs?

Adding A Room Extension

Adding an room extension might seem like a great idea if it’s going to be used. It might bring value to home workers but this type of extension won’t see you sitting in clover. On average, turning a disused room into something useful like a home office will set you back over £15,000. The downside? The value add has dipped by about 3%.

At the end of the day, a house is worth what the interested party thinks it’s worth. Things to consider:

Does it have to be a dedicated room?: Building out a fairly generic room might actually be worth more to the buyer. A room that can be used as an office or bedroom will hold more appeal.

Access to your room extension: Bear in mind what the room will be used for. Is it open plan? Will you be disturbed by family members moving through the house? This might not be a problem for you but could put off a buyer.

Fixtures and fittings: Generic is good. Have you set your mind on a fixed bureau or desk? Do the buyers really want this or are they going to rip it all out and give themselves the flexibility of using it as a spare bedroom?

Overhauling Your Kitchen

Kitchens are a selling point. But what appeals to the buyer is not necessarily what you’d think. Have you spent a small fortune on new kitchen units and the most expensive granite work surface? A recent report by the Daily Mailsuggests that returns have dropped.
On average, adding a new kitchen will only add £4,577 to the value of a home. That’s down by about 19%.

Consider these points before you start to remodel your kitchen:

Cosmetic updates might do the job: Do you really need to replace all of the kitchen units? Would simply replacing the doors have the same effect?

Work tops can be expensive: Especially if you want to use a material like granite or a hard wood such as oak. Would a marble effect work surface be better match for you budget?

Change the layout: and you might just add more appeal than you would by revamping your kitchen.

Installing Solar Panels

Environmentally friendly homes are becoming increasingly popular. More and more households are fitting solar panels to cut the carbon footprint and reduce home energy costs. It’s fair to say that these points will be incredibly attractive to any prospective buyers. The problem lies in the cost.

To supply a home in the UK with enough energy to be self-reliant solar panels will cost you about £12,000. Using only the money from the government payback tariff, this cost will be paid off in 19 years. Will you have time to recoup your investment before you sell?

Loft Conversions

We’ll linger in the attic for a little longer while we consider loft conversions. Giving yourself some extra space up here with the spiders and wood louse might seem logical when you have a growing family. An additional room can be used as a bedroom, storage space, etc but what’s the cost? On average, about £16,000. The flip side to all that extra space is that a loft conversion will add about 23% less to the value of your house than at the same time last year!

Before you rush out to have your loft kitted out as a secret boudoir, consider these points:

Do you REALLY need it or are you simply trying to get more money for your house?

Get costs up front. Find out how much the work will cost then ask the estate agent how much value it will add to your house sale. If the figure is negative then run for the hills!

If it’s storage space you’re after then maybe you’d be better off simply having the loft boarded.

A New Conservatory Ticks All The Right Boxes

It’s not all doom and gloom. The one factor that will add about 14% to the value of your property (an increase over this time last year).

At the end of the day, any home improvements you carry out prior to selling your home will be dependent on cost versus profit. If you’ve going to spend thousands of pounds revamping your house but only recoup a fraction of what you’ve spend you need to ask if it’s really worth it.

A little bit of tidying up and a cosmetic refresh on all fronts might just get you the sale without costing you the Earth!

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