Member Article

Adding Value Onto Your Property Before Selling

Your home will almost surely be more appealing to purchasers after some routine tidying and cleaning. If you have the time and money, larger renovations like loft conversions, garage conversions, or conservatories can pay off handsomely. However, simple changes can have a significant effect, and we've also highlighted several things to avoid. 

Before you start thinking about placing your house on the market, you should take stock and make any changes that may increase your chances of getting your asking price. Whatever you decide, it's a good idea to talk to a local estate agent about the qualities that make the biggest impact when selling in your region.

How Much Is My House Worth?

To find out how much your house is worth in the UK, you can follow these steps:

1. Online Valuation Tools

• Zoopla: Use Zoopla's house price estimate tool. Input your postcode and property details to get an estimate.
• Rightmove: Rightmove offers a similar tool where you can get an instant valuation based on their data.
• Estate Agent Websites: Many estate agents have their own online valuation tools.

2. Check Recent Sales

• Land Registry: Check the Land Registry's website for recently sold prices of similar properties in your area.
• Property Websites: Look at listings on property websites like Zoopla, Rightmove, and OnTheMarket to see asking prices for similar homes.

3. Hire an Estate Agent

• Contact local estate agents to get a professional valuation. Most will offer a free, no-obligation valuation service.
• They can provide a more accurate valuation based on their knowledge of the local market and comparable sales.

4. Professional Valuation

• RICS Valuation: Hire a chartered surveyor for a RICS (Royal Institution of Chartered Surveyors) valuation. This is more comprehensive and can be required for certain legal or mortgage purposes.

5. Use Multiple Sources

• Compare estimates from different sources to get a more accurate idea of your property’s worth.

6. Consider Local Market Trends

• Research local market trends and economic factors that might influence property prices in your area.

7. Consult with Neighbours

• Talk to neighbours who have recently sold their homes or had valuations to get a sense of the current market.

Tips:

• Be aware that online tools provide estimates that can vary significantly.
• The condition of your property, its unique features, and any recent improvements can also affect its value.
• Regularly update your valuation to reflect any changes in the market or property condition.

By using a combination of these methods, you can get a more comprehensive understanding of your house's worth.

10 Ways to Add Value on Your Home

Enhancing the value of your home is a priority for many homeowners in the UK, whether for personal satisfaction or to maximise return on investment when selling. There are numerous ways to achieve this, from major structural changes to simple aesthetic improvements. Each method brings its own set of benefits, helping to make your property more appealing and functional. Here, we explore ten effective strategies to add significant value to your home, ensuring it stands out in the competitive UK housing market.

1. Loft Conversion: Transforming an unused attic into a bedroom, office, or living space can significantly increase your home's value and add extra living space.
2. Kitchen Renovation: Updating your kitchen with modern appliances, new countertops, and stylish cabinets can make it more appealing and functional, thereby increasing its value.
3. Bathroom Upgrade: Renovating bathrooms by adding new fixtures, tiling, and possibly even an extra bathroom can make your home more attractive to potential buyers.
4. Energy Efficiency Improvements: Installing double-glazed windows, insulation, and solar panels can lower energy bills and increase your home's EPC (Energy Performance Certificate) rating, making it more attractive.
5. Garden Landscaping: A well-maintained and landscaped garden can add curb appeal and provide additional living space for relaxation and entertainment.
6. Adding a Conservatory: A conservatory or sunroom can add extra living space and bring in natural light, enhancing the appeal and value of your home.
7. Garage Conversion: Converting a garage into a living space, such as an extra bedroom, gym, or office, can add significant value, especially in areas where parking is not an issue.
8. Installing Smart Home Technology: Adding smart home features like security systems, thermostats, and lighting can modernise your home and attract tech-savvy buyers.
9. Curb Appeal Enhancements: Simple upgrades like repainting the exterior, updating the front door, adding outdoor lighting, and maintaining the driveway can make a great first impression and add value.
10. Extension: Building an extension, whether it's a side-return extension or a rear extension, can add significant living space and value to your home, especially in high-demand areas.

But remember, according to experts;

Remember that higher value does not automatically enhance your return, and a positive ROI does not always equate to profit. It is also critical to ensure that the pricing for your modifications corresponds to the worth of your home; investing large sums on a property that is under the average value is unlikely to yield significant returns. 

How a Bridging Loan Can Help

A bridging loan can be a useful financial tool when you're trying to determine and leverage the value of your house for various purposes, such as buying a new property before selling your current one. Here’s how a bridging loan can help:

1. Facilitating Property Purchases

• Immediate Funds: If you’ve found a new property you wish to buy but haven’t sold your current home yet, a bridging loan provides the necessary funds to proceed with the purchase.
• Avoiding Property Chains: It helps you avoid the hassle and stress of being part of a property chain, where the purchase of your new home is contingent on the sale of your current one.

2. Maximising Sale Value

• Time for Proper Sale: With a bridging loan, you can take your time to sell your current home at the best possible price, rather than being rushed to sell quickly to finance the new purchase.
• Making Improvements: You can use the bridging loan to make necessary improvements or renovations to your current home, potentially increasing its market value before selling.

3. Flexibility and Speed

• Quick Approval: Bridging loans are generally approved faster than traditional mortgages, giving you quick access to funds.
• Short-Term Solution: They are designed as short-term solutions, typically ranging from a few weeks to a few years, making them suitable for temporary financial gaps.

4. Managing Cash Flow

• Capital Release: If your money is tied up in your current property, a bridging loan can release capital that can be used for other investments or immediate expenses.
• Interest Only Payments: Many bridging loans offer interest-only payments for the term of the loan, reducing the immediate financial burden.

Practical Steps to Use a Bridging Loan:

1. Assess Property Value: Use the methods mentioned earlier (online tools, estate agents, and professional valuations) to get an accurate value of your current property.
2. Determine The Loan Amount: Based on the value of your property and the amount needed for your new purchase or improvements.
3. Choose a Lender: Research and select a lender who offers favourable terms and interest rates for bridging loans.
4. Application Process: Prepare the necessary documentation (property valuation, proof of income, exit strategy) and apply for the loan.
5. Exit Strategy: Have a clear plan for repaying the loan, typically through the sale of your current property or securing long-term financing.

Key Considerations:

• Costs: Be aware of interest rates, fees, and any other charges associated with bridging loans.
• Risk: Understand the risks, including the possibility of not selling your property as quickly as anticipated, which could lead to financial strain.
• Advice: Seek advice from financial advisors or mortgage brokers to ensure a bridging loan is the right option for your situation.

By using a bridging loan strategically, you can smoothly transition between properties and potentially enhance the value you get from selling your home.

This was posted in Bdaily's Members' News section by iCONQUER Ltd .