20 Quickest Ways to make money on your property
Summarized and adapted from the BBC program hosted by Colin McAllister and Justin Ryan.
The following tips were presented by interior design and property experts Colin McAllister and Justin Ryan, hosts of such shows as The Million Pound Property Experiment and How Not To Decorate. The amount that each improvement is said to be worth is given in British Pounds, although it must be kept in mind that the market, location and comparables determine property values so these amounts are arbitrary.
20. Smarten Up the Master Bedroom (700 pounds)
Get rid of the television, phone and other things that give the room
a dual purpose. Invest in fabrics, linens and lighting to create a relaxing
sanctuary.
19. Knobs and Knockers (800 pounds)
This refers to door knobs and cabinet hardware. Changing the handles on kitchen
cabinets can upgrade the look for not a lot of money. Door knobs throughout
the house should match and be in working order. And the entry door knob contributes
tothe overall first impression.
18. Bring light into your home (900 pounds)
Bring in natural light by removing the drapes (or at least opening them up).
Light fixtures provide artificial light and should be in keeping with the
style of the house. When we were showing our first house, most of the viewings
were at night, so I turned on every light fixture in the house to brighten
it up. Not only can the potential buyers see the house better than if it was
half in the dark, but it also saves them from fumbling around for light switches
in every room.
17. Fit a shower (1000 pounds)
The main bathroom should have a minimum of a tub and shower combination (but
a hand held shower in a free standing tub doesn't cut it). A separate stand-alone
shower is better, if there is room for it. And, if possible, make it a power
shower by investing in a better shower head (such as the popular rain style
heads widely available today).
16. Create Storage (2000 pounds)
A house can never have too much storage. MDF cupboards are an affordable way
to increase storage space. The four rooms where storage is most important
are the bathroom, the study, the bedroom and the kitchen. When showing the
house to sell, it is best if any storage is no more than about half full,
or else it will appear that there is not enough room.
15. Show off location (2200 pounds)
The top three selling features of any home are said to be location, location,
location. So you are not only selling a property, but also its location. Adapt
the location to the buyer. Young buyers, for example, may be more interested
in the proximity to trendy clubs, families will want to know about the area
schools and nearby parks. Older folks may just be interested in finding a
relaxing coffee shop. Find out what you can about the buyer and sell the location
to them based on their interests.
14. "Kerb" appeal (curb appeal) (2500 pounds)
You only get one chance to make a first impression. Potential buyers may not
even look at the house if the exterior is not appealing. Give any painted
trim a fresh coat. The safest colours for a front door are blue, red, black
or green. You may like purple or fuschia, but a lot of people won't.
13. Central Heating (2500 pounds)
In most parts of North America, central air conditioning is just as important
to have.
12. Restore period features (3000 pounds)
Especially fireplaces, wooden floors, sash windows, stained glass and cornice
mouldings.
11. Finish unfinished jobs (3500 pounds)
I can speak from experience here. We had our previous house on the market
twice. The first time, the basement was not finished and the only offer we
got was $9000 off the asking price. We took the house off the market, and
I finished the basement. When we had it up for sale again, we had multiple
offers and it sold in less than a week for close to our asking price. If necessary,
call in a professional to help with those unfinished projects. Buyers like
houses in "just move in" condition with little or no work needing
to be done.
10. Declutter your home (4000 pounds)
Clutter makes a house appear smaller. Consider renting self-storage space
to temporarily stash the stuff that is cluttering up your house.
9. Tart up your garden (5000 pounds)
"Garden" refers to the back yard. Keep it low maintenance. Add splashes
of colour. Highlight alfresco dining (ie a barbecue and a nice patio set).
8. Add a downstairs loo (5500 pounds)
An additional bathroom in the basement almost always adds value (provided
it is done right).
7. Modernize your kitchen (7500 pounds)
The most valuable kitchens are functional and good-looking. An eating area
is a must-- that is, an informal eating space as opposed to a formal dining
room.
6. Add a conservatory (10000 pounds)
Adding a sunroom may require "planning permission" (building permits)
and should fit in with the architecture of the home. Don't build an oven--
that is, a sunroom that gets too much of the hot afternoon sun. And don't
sacrifice the "garden" or back yard. A sunroom or conservatory should
bring the outdoors in, not replace the outdoors.
5. Paint and clean (10,000 pounds)
This should be a no-brainer. Paint the house in neutral colours and clean
like you've never cleaned before. A house in just-move-in condition will sell
faster than one that require the buyer to do a lot of scrubbing and painting.
And on the subject of painting: while bold colours may be reflective of your
personality and you may hate beige, remember that this is no longer going
to be your house. The object is to appeal to the greatest number of potential
buyers.
4. Convert your loft (15,000 pounds)
Increase the square footage of your house by finishing space that is already
there. Be sure to allow yourself enough time to finish the project and don't
attempt it if it is not in your budget. Define the space. An additional bedroom
will add value. A storage room or a playroom will not.
3. Gorgeous Lifestyle Accessory Must-Haves (GLAMS) (15,000 pounds)
Basically, this refers to staging your house with those items that represent
a certain lifestyle. Things like plasma televisions and high end furniture
help to market your house as more upscale. Best of all, you can take those
things with you when you move. Alternatively, you might be able to rent some
of those items for a short term lease.
2. Create parking (20,000 pounds)
Folks living in the 'burbs take driveways for granted, but some older areas
were built before we became so reliant on the automobile for mobility. Find
a way to add off-road parking it it doesn't already exist. And a single car
garage will add about 6% to your property value; a double garage will add
about 15%.
1. Add an extension (30,000 pounds)
Any addition should be consistent with the architecture of the house. And
keep in mind that neighbourhoods have ceiling values on their properties.
An addition that adds three more bedrooms to a three bedroom house will hinder
the sale of the house if all other houses in the area have only three bedrooms.
Additional comments:
While I don't agree with some of the numbers thrown around by Colin and Justin, their advice is generally good. Again, a lot depends on the location and the comparables in the area. If you are selling your house, some of the suggestions are spot-on, such as cleaning and de-cluttering and finishing unfinished jobs. Others, like building an addition, don't make as much sense. The greater your investment, the greater the potential loss. Some renovations may only add a percentage of their cost to the value of your property. For example, adding a bathroom supposedly adds 5500 pounds to the value. However, if you invest in high end fixtures, you could spend more than this. And if you only use cheap materials, you could even take away from the value of your house.
See also: 20 Quickest Ways to Lose Money on your Property