It is widely accepted that one way to increase the value of a house is by undertaking a renovation. However, how much to value your home after renovation can be challenging. This article will address how to value a house after improvements.
House improvement and renovation are terms used to mean restoring the house to its original or better state after years of usage. It involves the modification of a home to meet owners’ space, comfort, energy efficiency, and other personal desires.
Thus, any work done on the house to ensure safety, quality, and functionality are termed house renovation. It involves adding new rooms, changing the house layout, and improving its peak.
When renovating or improving a house, living rooms, bedrooms, and kitchens may change or not change. Internal work is done to make them look more appealing and comfortable.
House renovation or improvement in the UK may include;
These facilities in a house become outmoded constantly with time, and most homeowners are faced with:
This kind of improvement seeks to explore the floor space judiciously. An open floor makes a space seem wider. Current lounge renovations include speakers fixing speakers in ceilings controlled with a remote. It also installs proper lighting.
People convert basements for several other purposes. Most people are converting their basements into family time alone, theatre, bedroom, game rooms etc.
Likewise, garages are being converted into studios, home offices, grounds for kid's play etc.
Most people in the UK create gardens by growing lawns, trees, and grass. Some also construct beautiful pathways, resting areas, summer huts, wall tiling, and paintings. Also, this may include changing doors and windows.
Today, security is a key feature in increasing the value of a house. Installing modern security and overall systems are also forms of renovation in the UK.
The worth of your house after renovation would depend on the amount of work done on the house. House improvements can increase the value of a house by 50% to 100% based on what work was done.
Some changes also add a small amount of value to your house's worth because a little work was done. Other renovations can even double the value of the house. You must note that renovation makes changes in parts of the house, maintaining the core plan of the house.
When an entire structure is brought down, it is termed demolishing, not renovation.
Averagely, renovating a 3-bedroom house in the UK now can cost you a minimum of £76,820. You must make a 10 to 15 percent cost provision for unanticipated issues. We highlight various forms of the cost that one may incur for a three-bedroom house in the table below.
From the above table, it could be seen that the cost of renovating a 3-bedroom house could be £76820 - £139720. You may decide to undertake some of these renovations. The improvements you do determine the value that will be added to your house’s worth.
Explained below are some approaches to estimate home value after renovation
One of the best and simple ways to estimate the value of your house after renovation is by using the cost-of-renovation approach.
With this approach, you assess the value of your house by including the cost you incurred in improving the house. To use this method, you need to first ascertain the market value of your house before renovation and then add the cost of renovating to arrive at the current worth of your house after renovation.
For example, if the market value of a three-bedroom house is currently £250,000 and the cost of changing doors, and windows and improving the kitchen sum up to £52,000, the value of the house will be £302,000 after such renovation.
You can also conduct a sale comparison with similar houses with the new features you have introduced. Your renovations may be what someone already had before selling.
You can conduct this comparison through;
- Online searches
You can acquire the prices of similar homes online to estimate the worth of your renovated home. By using this approach, ensure the site you are pulling this data from has some credibility. This will make your estimate more realistic.
- The Land Registry
In the UK, the Land Registry records all properties owned and current change of ownership with current values. This registry can assist in finding prices of similar homes.
- The House Price Index
The House Price Index in the UK is a data report on the values of all houses recently sold. This computation is done by the National Statistics, hence more credible and reliable as it involves all houses sold in the UK on monthly bases.
- Using the services of building surveyors
Surveyors and estate agents can also assist you to obtain the value of a renovated home by comparing it with current data in your area.
- Talking with homeowners in your area about how they probably sold a renovated house
Five to ten prices of similar houses like your renovated home can be collected. Obtaining prices of similar houses using the above avenues will help you to obtain the average price possible to value your renovated home.
All these avenues of comparison come with house characteristics that you can compare with your renovated home.
For example, if the prices of houses that fit your renovated home range between £230,000 and £280,000, expect the worth of your improved house to be within this range.
After a renovation, you can use online home calculators to ascertain the worth of your home instantly. These online software applications can assist you in valuing your property within 3 minutes for free. You will only need to answer a few questions about the house.
These are a few points on home valuation after renovation:
For more information on home value after renovation contact RealAdvisor now. Use our link https://realadvisor.co.uk/en/appraisal to value your house now after renovations.
The house renovation cost is affected by factors like the size of the property, age and condition of the house, level of renovation and its complexity, structural and building extension work, material quality, decoration, and location.
The smart way to track your cost of renovation is to use the spreadsheet for recording any cost incurred while improving your house. This helps you at any time to know how much of your renovation budget is left.
You will need to be certain about which part of your house you need to renovate and obtain renovation estimates from three different construction workers. This will help to get the best deal out of these three.