How to keep under your house’s ceiling price/
This is one of those topics that can really feel like throwing cold water over your dream renovation. But, factor your house’s maximum potential sale price into your plans and budget, and you could save yourself a lot of pain if and when you come to sell further down the line.
Understanding the potential value of your house
When you first get stuck into making renovation plans, it is so easy to get carried away. Perhaps an extension? How about a garage? A new kitchen, new bathroom… But you need to be careful you don’t end up spending so much that you won’t see a return on that investment when you come to sell the property.
There’s only so much value you can add, before you hit your property’s ceiling price. This is where a two-pronged strategy of creating a well-planned budget, alongside understanding your property’s ceiling price is key.
Take us as an example. When the plans and quote for our proposed kitchen extension came through, it was a shock. It forced us to take a good look at our reasons for extending, and what we really wanted from our home. In the end, we decided the £80K kitchen extension wasn’t the right path for us at the time. It just wouldn’t give us the best return, in terms of lifestyle and potential property value.
So what is a property ceiling price?
Ceiling prices can be tricky to work out, and it’s certainly not cut and dry. Generally, a house’s ceiling price is a combination of the maximum price any property (of similar size and age) in your street has sold for, plus an expert valuer’s opinion on the maximum the property would sell for.
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How can I work out my house’s ceiling price?
As a start to discovering your property’s ceiling price, look up your area’s sold property prices on gov.uk, and compare sold prices by size. This can be a bit skewed when there haven’t been many sales in recent years in your street, so Zoopla’s price estimates can give a good rough idea of your property’s current value (not taking into account any work you’ve already done).
To get a true expert opinion, it’s worth booking in a valuation with an estate agent. They’ll be able to tell you the maximum they believe your property would sell for.
You can then use that figure to guide you on your renovation plans and budget building. And that’s where it starts to get really exciting!
Deciding how to add value to your property
Once you know your property’s ceiling price, and your budget, choosing where to allocate your time and effort gets a bit easier. Break them down into things that add a lot of value, but are more expensive (think replacing windows), and things that add some value, but are easier/cheaper to do (modernising the bathroom suite). You can then prioritise depending on your budget, and what you really want from your home.
Neil’s post on adding value by renovating lists a heap of ideas that are a sure-fire way to add value to your home.
A love project
Ultimately, renovating your own home is about your love affair with your house. If you’re anything like us, you likely have so many things you’d like to do, it’s tricky to choose. While adding value and not overspending on your renovation is crucial, it’s also important to go with your gut. Do the things that will add value to your life in your home. You may decide that the enjoyment you get from certain projects is more valuable than any potential financial gain. And after all, it’s you that’s going to live there.
If you have any questions on ceiling prices, budgeting, or adding value to your renovation, pop me a DM on Instagram.
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