Unless you are a seasoned property developer, investing in home modifications in an attempt to add value is an extremely challenging endeavour. Not only is the bottom line cost of modifications an important consideration, for example, but it is also crucial that you identify the value that these offer and how they will impact on potential buyers. With such a proactive outlook, you are likely to spend a huge amount of money on home improvements that fail to add the requisite level of value in the existing marketplace.
With this in mind, let’s take a look at three of the most common property modification mistakes by home-owners.
Investing in Expensive Modifications
While UK real estate blossomed throughout the first three financial quarters of 2014, values and price points began to stagnate in October. This trend has continued into November, with even lucrative locations throughout London now suffering from falling property prices. This means that investing in costly modifications such as installing a conservatory offer minimal value, as they are unlikely to boost the price of your home in a rapidly depreciating marketplace.
Not Learning from Industry Experts
Given the challenging nature of home modification, it is important to study the art carefully before making a significant financial investment. By failing to learn from industry experts such as Property Rescue (who operate in the quick house sale market and buy homes cheaply before adding value through modifications), you run the risk of wasting considerable amounts of your hard –earned money.
Failing to Calculate Value and Cost
When it comes to making home modifications, it is important to understand that there is a direct correlation between cost and value. You must be able to justify everything that you spend and translate this into the value that it will add to the home, as this will help you to determine whether or not it is a viable investment. Many home-owners fail to follow this rule, however, causing them to exhaust their budget without securing a viable return.
Article Submitted By Community Writer at Dr Prem