A leading professor from Manchester Metropolitan University has discovered the secret to successful home improvement.
The formula, devised by Dr David Holmes on behalf of leading kitchen manufacturer Magnet, can calculate the value that a home improvement scheme, from redecorating a room through to installing a new kitchen, will add to a property.
VA = (ED+Q+P+S-AI)
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It will empower homeowners to make rational and informed decisions about the pros and cons of conducting home improvements. It will also enable them to calculate if a specific improvement will add or detract to the overall value of the home.
A result (VA%) between 0 and 5% indicates that the improvement will cost more than it will ever add to the home, while a result of 6% is a sound investment that will pay for itself. A result of 7% upwards is a good investment that will definitely increase the value of the home well beyond the amount invested in the improvement.
The formula incorporates five key elements to evaluate a home improvement scheme:
Amount Invested (AI) is the cost of the improvement in keeping with the overall home value; Enhancing Design (ED) is whether it fits in with the rest of the home; Quality of Workmanship (Q) relating to the quality of the finished job, not just on cost; Practicality (P) is whether the improvement will be useful to a new owner and Saleability (S) will it impress buyers and speed up a sale.
Phil Spencer, TV presenter and property expert, said: “As the value of any work you do to a property will ultimately be determined by what someone else is prepared to pay for it, when embarking on home improvements it is vital to consider things through the eyes of a potential buyer.
“To truly add value, an improvement must not only increase the net value of the property, but also increase its desirability when you decide its time to move.
“Some improvements, such as a new kitchen, can increase both value as well as saleability at modest cost. It’s very important to chose fixtures and fittings that suit the price bracket of the property but a well-fitted kitchen that matches the style and feel of the home could increase the value of a property by as much as 10%.
“It is imperative to ensure that work is carried out to the highest standard possible. Sloppy, inferior workmanship can have a negative effect on value so I would always advise using a reputable company or contractor.”
Dr David Holmes, Manchester University, said: “The resale value of your home has two elements, the net value of the property and the saleability or desirability of your home.
“This formula can help people to calculate if their home improvement will be seen as a great addition enabling the sale of the home before having to drop the price. Or if the improvement will cost much more than it will ever add to the home.”
Alison Coleman from Magnet, said: “The kitchen is the beating heart of the home and fast becoming the showroom of the house. But like any other home improvement it is governed by the same fixed rules as to its ability to add to the overall value of a home at the point of sale.
”We hope that this formula will help people make the right decision when it comes to home improvements and hopefully begin to eradicate the millions of pounds wasted on cheap fixes and poor workmanship.”
For more information visit www.magnet.co.uk/formula
This week, our favourite property gurus, Kirstie Allsopp and Phil Spencer, have been showing us how to make the most of Christmas festivities and top tips for different types of parties. We have been glued to this show Channel 4 and will certainly use some of the ideas for our Christmas parties this year.