Reflect before improving your home

27/11/2006

If you’re thinking about improving your home - either to enhance your comfort in retirement or to make it easier to sell - think twice.

Money spent on home improvements does not automatically increase the value of a property, according to the country’s leading chartered surveyors organisation.

In fact, in some cases, unsympathetic extensions and building works can devalue a property or make it more difficult to sell.  

In a survey published by RICS (Royal Institution of Chartered Surveyors) the most common types of home improvement have been rated in terms of the percentage value they are likely to add to a property.

Aesthetic improvements such as putting in a landscape garden can add 3% to the value of a property, but laying new carpets may only add 1% and wood flooring in most cases has very little impact on value.  An extension such as a conservatory is likely to add 5% whereas building a basement may only add 2%.  Improving services and temperature control are more worthwhile than people might think.

They believe installing central heating could add 5%, and double-glazing up to 4% to a property's future sale value.

Improvements which can assist in property saleability are:
•    Central heating
•    Off-road parking
•    Adding a conservatory
•    Adding a new bathroom or kitchen
•    Reinstating period features
•    Double glazing
•    Putting in a downstairs loo

In most cases, converting one type of room into another does not seem to add value.  Some 54% of surveyors believe converting a garage to a bedroom will not improve saleability and 88% believe the same is true of converting a garage to a gym.

 
RICS spokesman, Jeremy Leaf a chartered surveyor estate agent says: “'Most properties provide some potential for expansion either up, out or down but we would advise people to think sensibly about how much they are investing and their key motivator before undertaking major projects.

“It is important to think about the style and age of the property before undertaking any works - mock Tudor features do not sit well in modern properties; likewise contemporary alterations may undermine the integrity of a period home.

“What appeals to some people may not appeal to others and costly disappointments can be avoided with a little prior planning and research.”

Some advice from RICS estate agents about how to get the most out of a property being improved for sale:

•    Don't be tempted to over value an improvement and expect high instant returns irrespective of market conditions
•    Know who your target buyers are and improve the house to suit their requirements.  Always look for the widest possible appeal
•    Most areas have a ceiling price, ie, a maximum sale price you can expect to achieve - bear this in mind.  Improving a poor property in a good location is better than improving a good property in a poor location
•    A cheap refurbishment is worse than not doing anything at all
•    Don't bite off more than you can chew - stick to a budget and ask the experts for advice