Most home owners will be able to say that their property is also their most significant financial asset. So, whether you intend to continue living in the property or want to move up or down the housing ladder, the property’s value is likely to be of interest to you.
Chartered Surveyors are often asked their opinion on what might increase a property’s value; the answer will usually come under two main headings: space and saleability. A little forethought should always be used when owning your own home in order to achieve the property’s best possible value in the future.
How does a surveyor value a property?
A property valuation is usually carried out by an independent professional, a qualified Surveyor who is registered with the RICS valuer scheme. The residential valuation is typically calculated using the comparable method, with the assistance of an adjustment matrix.
The valuer will assess similar properties in the area, and may break their value down on a floor area basis, then adjust these figures to make allowances for any differences to the subject property. Inter alia, factors that might be considered are age, construction quality and parking.
Space
That means that the most effective way to increase the value of your property, can be to add space. If you increase the usable floor area, you add value to the surveyor’s calculation. Of course, that’s easier said than done!
Viable options might be to add a conservatory, build an extension, add a room above a garage or convert a loft space into living accommodation. If these are carried out inappropriately, then they can have an adverse effect on value.
With any significant change to your property, however, do not forget the planning element. Some changes will come under permitted development rights, but these rights have stringent restrictions that are potentially augmented by conservation area or listed building regulations. Proceeding with any changes to the property without being absolutely sure of the planning requirements can end in disaster. We recommend that you speak with your local council planning officer before commencing any work.
Saleability
‘Saleability’ is not technically considered to be part of the valuation equation nor is it factored in to the surveyor’s valuation process.
The real benefit of increasing the attractiveness of your property and realising its potential selling price lies in generating interest when it comes to sale time.
If your property is coveted by one family, then that potential buyer is in a strong position. But if your property is sufficiently attractive to warrant attention from several buyers, then the position of strength lies with the seller. In the demand and supply equation, if you increase attractiveness (demand) then in an open market the value will rise. An attractive property is, in this way, more likely to achieve or exceed its value.
The key to achieving that scenario is therefore to attract buyers away from similar properties, which requires differentiating factors.
Good maintenance and attractive presentation can achieve this, as can green energy features that enhance the property’s EPC, making these areas potentially useful investments.
In general terms, keep saleability in mind when you replace parts of your home. If you know you are not going to remain in the property indefinitely, then keep your future purchaser in mind. Would they like your favourite edgy, metallic kitchen fittings or would they prefer something more traditional? Would they enjoy your lurid green and yellow colour scheme, or would they prefer something more neutral?
This concept should also be considered in the context of changing property markets. At the time of writing the property market is slowing down across the country as financial instability continues. A change can come in a relatively short period of time. Whatever the climate, properties with features attractive enough to increase the number of potential buyers will stand the best chance of selling within a reasonable timescale and for an acceptable price.
Need a property valuation? Ask our independent Chartered Surveyors for a valuation on your property.