The property market has been somewhat mercurial over the past year, buffeted as it has been by marked shifts in UK fiscal policy and general affordability. With the prospect of properties losing a significant chunk of their value in the short term, property developers are looking at a short window of opportunity to maximise property values before sale. As a property developer, how should you go about improving value?
Assessing Your Property
First, though, before you make any movements towards altering the property, you should ensure that you understand everything you can about its present state. Without having a base line for its current condition, you can’t be sure exactly what work is necessary, or to what extent any work will improve the value of the property.
Surveying the property enables you to pinpoint any potential structural issues, that could negatively impact the value of the property in the future (if allowed to progress). A valuation will also give you a fairly accurate initial property value, giving you context for the impact of your work.
Strategic Renovation Projects
Renovating with a singular view to maximising property value is, in essence, a numbers game. Renovation works cost money, from the materials to the expert labour required – but budgeting is a separate matter entirely. Generally speaking, you will want to target renovation projects that have the biggest return on investment (ROI), representing the biggest leaps in value for the lowest possible upfront cost.
On the market side of the equation, there are some stand-out projects that would enhance value and improve visibility against competitor properties. Extensions are particularly valuable amongst these projects, especially where additional bedrooms and bathrooms are created. Ultimately, any renovations that increase available square footage will have a dramatic effect on house value.
Smaller projects that lean towards the aesthetic can have some value, at least when set against the relatively low costs involved. However, aesthetic decisions are always subjective, and should be considered carefully so as not to inadvertently alienate potential buyers.
Enhancing Kerb Appeal
While not hugely effective in raising property value, efforts to improve kerb appeal can still be hugely beneficial to a property’s prospects. Though attention and funding should rightfully be focused on profit-generating renovations like extensions or loft conversions, a modicum of effort in landscaping can improve first impressions and increase the likelihood of contested bidding. Replacing the boundary fencing to improve garden aesthetics and enhance privacy can score some early points with visitors, while well-looked after lawns and flower-beds hint towards an idyllic seasonal outdoor space.
Budgeting and Cost Management
Of course, affording these changes is a challenge in and of itself. There are logistical and legal considerations to bear in mind, including planning permission applications; this is after having designs professionally drawn up by a contractor team, and isolating funding for your ideal materials. Compromises may be necessary, but good deals can be found through fielding different firms to choose the best possible quote.
Also Read: The importance of using the best estate team when purchasing property in Pattaya
