Renovating your home before putting it on the market can not only help you sell it faster but also potentially add thousands of pounds to its value, new research reveals.
According to Direct Line Home Insurance, homeowners can boost the resale price of a property by £9,980 on average by redecorating every room.
The best single room to renovate is the kitchen, which can add £9,275 to the value of the property. Renovating the bathroom on a property can also add £7,532 to its value, the research suggests.
Most profitable changes homeowners can make to add value to property
Work on home
Redecorating every room
Renovating the kitchen
Renovating the bathroom
Renovating original features
Adding modern dressing
Refurbishing the property’s exterior
Jeremy Bristow, head of home insurance at Direct Line, advises householders planning home renovations to let their insurer know about any changes being made to their house.
He says: “Any work that involves walls being knocked down, floors being taken up or electrics changed, can result in damage to the property. Having scaffolding erected and builders coming and going with spare keys also increases the security risk.”
He adds: “Once the building work has been completed, householders should also inform their insurer of any changes that have been made to their property, as adding rooms can not only add value to their home, but also change their home insurance requirements.”
Fixing up a home
Direct Line Home Insurance says ‘fixer uppers’ - homes requiring major structural work - can be purchased for £40,000 (17%) less than the market average.
Houses requiring only minor structural fixes can be purchased for £13,500 (6%) less than the market average for the property.
Renovating a property can provide a more affordable way for first-time buyers to get on the housing ladder.
Mr Bristow says: “Fixer uppers are still a good option for first-time buyers and there is still money to be made for those looking for a challenge by renovating a property. However, homeowners should keep the costs of major work in mind and ensure they are not taking on too much work."
He adds: ”Putting your own personal touch on a home can be fun and exciting but complications could lead to a hefty bill. With this in mind, renovators should ensure they have a contingency fund in place should they come across any unexpected repairs.”
Direct Line Home Insurance questioned over 2,000 adults and 100 estate agents for the survey.
Estate agents highlight there is still money to be made in flipping properties, with 62% believing buyers can capitalise on price reductions if renovations are required and make a profit even if a house requires structural work.
However, there are considerations depending on the area, with one estate agent located in Bristol reporting that there can be consequences with higher value properties as stamp duty can erode profits.
- Mortgage fees hit a five-year high as lenders lure in customers with cheap rates and sting them with extra costs
The research also found that one in five Brits think fixing up a home is more cost-effective than buying a home recently decorated, while one in eight people think the stress of fixing up a home is not worth the hassle of organising a renovation.
More than a quarter of homeowners believe fixing up a home allows them to add their own personal touch to a property.