Selling - Is it worth spending on the property?

[Alan Medic]

Can anyone advise if spending to improve your property is compensated by the increase in sale value?

[KidKruger]

Come on Alan, that's such an open question there's no true answer.

More than obviously in some cases the costs are compensated and other cases they are not.

Without specifics you can't reasonably expect a useful answer unless someone lists all possible scenarios for you.

What's the property size/location/value/outstanding mortgage/general condition/freehold status/planning options/cost of works/projected sale value after works/anticipated quality of completed works/is it rented/loss of rental during works/anticipated duration of works/completion date of works/expected change in facilities or accommodation/additional borrowing you'll need to undertake the works ?

[Alan Medic]

Actually KK, I was really just wondering was there a rule of thumb. I haven't put a lot of thought into it yet but thanks for highlighting what I need to consider. It's a long time since I moved anywhere.

[tfwsoll]

It depends what the improvements are but unless you can do them at a very reasonable cost, or they are purely cosmetic, it is doubtful that you will be compensated for your outlay. The real benefit may be that you sell your property quicker.

[KidKruger]

Alan if you want to chat on it PM me, I'm not an expert but have 2x such projects in various stages of progress so may able to help to some extent.

Rule of thumb is probably based on one's own needs / what exactly you're trying to achieve and in what timeframe.

[womanofdulwich]

My ex-neighbours had their house painted throughout and then the new owners gutted it. I think it's always good to ask as many people you can what they think. Sometimes it is not obvious to us exactly how others would view our homes.

[Alan Medic]

Thanks for the offer KK and I may take you up on it a little bit further down the line. I've yet to tell the OH and son I'd like to move. We need more space and frankly that means moving out of ED, maximising the selling price and getting something further out of town that's bigger.What I'm not sure about is how far I need to go.

[KidKruger]

Whenever you're ready AM, possibly it'll have legs if you've thought it through and checked out your options before telling family !

[Twirly]

Why not get an estate agent in to value it and ask their opinion? They will be able to tell you if it's worth it or not.

[KidKruger]

It would be worth it if the agent is not working off their own agenda, for me it'd be like inviting someone you know who's a disingenuous liar for their advice.

[LondonMix]

If your house hasn't been updated in a long while (10 years plus) but isn't a wreck, I've found that's when work adds the most value. Doing a light cosmetic update to kitchens, bathrooms, flooring and a lick of paint can add a lot of value of done fairly neutrally and taking into account what current buyers for a property your size are looking for.

If the place is a wreck (not saying yours is!) it will only ever appeal to someone looking for a project and is likely to be gutted and so anything you do around the edges is likely wasted money.

Structural work done cheaply is off putting so if you can't do something properly its best to sell your house as is. Unless your kitchen already needs replacing, you will probably at best break even on doing a side return extension. Loft conversions do add money, but if you could convert your loft, you probably wouldn't need to move for more space.

[Voyageur]

My other half is an estate agent. He says there is no point in putting in a new kitchen/bathroom etc. as most buyers will rip out what you have put in and your money will be wasted. keep it clean, tidy and uncluttered and spend your dosh on your new place.

[LondonMix]

That's not really true. Of the many people that I know who have bought homes in London, almost all would only look for a place that doesn't require any work. Most people hate doing work and most don't have the extra cash to do anything significant to a place right after buying it with prices what they are.

Some buyers are looking to put their own stamp on a place (my partner and I are like that), and like most people looking to put a stamp on a place, prefer places that need work anyway that are cheaper so you aren't paying a premium for a house with a new kitchen that you plan to rip out.

[EPB]

One factor that doesn't seem to have been mentioned is the cost of moving.

Twelve months ago our move to ED would have paid for a loft job: Stamp Duty, estate agent, solicitor, and the move itself cost us over ?30,000.

[motorbird83]

Once your house is worth more than 600k, then definitely. Even if you buy a place worth exactly the same (just bigger and further out) as you current place, the stamp duty, legal fees and agent fees will be in excess of 30k.

If you are looking to spend more than what your place is worth, then you have to find the extra deposit or take on a bigger mortgage on top of the 30k+ for moving costs. That's why there are so many cranes in the sky doing loft conversions at the moment! Creating space is often a good alternative to moving and add values if you do eventual move on.