Home and property owners/managers who have edged into negative equity can reverse the downward slide with home improvements, which can raise the sale price and protect against a reduced valuation from the mortgage lender.
But...... Abbey National recently asked 100 Estate Agents “which home improvements” do they consider “add most to the value of a home?” What was surprising is that it's not the large projects like extensions or expensive kitchens that add the most value - in fact, they said, often these tend to lose money - as much as 50% on their cost! On average, a home extension costs £ 33.800 but adds only £ 13.568 to the value of a home: that's a loss of over £20.000!
One of the more quicker and simpler to realise improvements decorating, like replacing carpet with wooden flooring, turns out to add the most value. Based on the calculations above, every £ 1.000 spend on quality decorating adds more than 265% to the value of your home/property (1330 x 2.65 = £ 3,524.50)
(Of course there is a common sense limit in spending: spending £ 10.000 on decorating one or two rooms will not increase the value of your home with £ 26.500).
Installing a quality wooden floor in an average sized room of 4.5 by 4 meters (20 sq m including saw-waste) will costs you around £1,150.00 including VAT for materials = wood floor, underlayment, adhesive and beading included! Based on the results of Abbeys survey it adds around £ 3.000 to the value of your home! (Not bad for 1 or 2 days work as DIY-er)