How Much Value Can Be Added to a House?

Home How Much Value Can Be Added to a House?
Sunny Avenue
Latest News Sunny Avenue
20 Feb 2024

Are you looking to sell your house and maximise its potential value?

Making strategic improvements to your property can significantly increase its market worth.

In this comprehensive guide, we will explore various ways to add value to your home, from small renovations to large-scale projects.

 Whether you're planning to sell in the near future or simply want to enhance your living space, these tips will help you make informed decisions and achieve the best return on your investment.

Key Takeaways

  • Recognise that your home is a valuable asset and increasing its worth can significantly impact your financial future. Well-maintained homes are more appealing to buyers, leading to quicker sales and potentially higher profits upon selling or refinancing.

  • Before making improvements, research the current real estate market in your area and consult with local experts to understand property values and identify renovation opportunities that offer the best return on investment.

  •  Not all enhancements require major investments. Small upgrades like updating the kitchen, enhancing kerb appeal, creating storage space, updating lighting fixtures, and applying fresh paint can substantially boost your home's value without breaking the bank.

  • Consider mid-scale projects such as open floor plans, bathroom renovations, energy efficiency improvements, home office additions, and outdoor living space enhancements. For maximum impact, larger renovations like extensions, converting unused spaces, creating master suites, and investing in renewable energy can significantly increase your home's value, though they require more time and financial investment.

How Much Value Can Be Added to a House?

The value of a house can be substantially increased through strategic renovations. Small-scale improvements like kitchen updates and enhanced curb appeal can yield significant returns. Mid- to large-scale renovations, such as open floor plans and master suite additions, offer even greater potential for value enhancement.

Small-scale renovations like updating the kitchen or enhancing kerb appeal can typically add anywhere from 2% to 5% to a home's value, equating to thousands of dollars in increased worth.

Mid-scale projects such as bathroom renovations or energy efficiency improvements may increase value by 5% to 10%. 

While larger-scale renovations like extensions or creating master suites can potentially add 10% or more to the home's overall value, representing tens of thousands to hundreds of thousands of pounds in added worth, depending on the size and scope of the project.

Understanding the Importance of Home Value

Before diving into the different ways to increase your home's value, let's first understand why it matters.

Your home is likely one of your most valuable assets, and maximising its worth can have a substantial impact on your financial future.

By increasing your property's value, you have the potential to generate higher profits when selling or refinancing.

Additionally, a well-maintained and updated home is more attractive to potential buyers, increasing the likelihood of a quick sale at a desirable price.

Assessing the Current Market

To determine the potential value of your home and identify areas for improvement, it's essential to assess the current real estate market in your area.

Research recent sales of similar properties in your neighbourhood to gain insight into market trends and buyer preferences.

Consult with local real estate agents who have expertise in your area to get a professional opinion on the value of your home and the potential return on investment for different renovation projects.

Small-Scale Improvements with Big Impact

Not all home improvements require significant financial investments.

Sometimes, small-scale renovations can have a substantial impact on your home's value. Consider the following improvements that can be done relatively quickly and at a reasonable cost:

1. Update Your Kitchen

The kitchen is often considered the heart of the home and can significantly influence buyers' decisions. Consider updating your kitchen by replacing cabinet doors, installing new countertops, or adding modern fixtures and appliances.

These relatively small changes can give your kitchen a fresh and updated look, making it more appealing to potential buyers.

2. Enhance Kerb Appeal

First impressions matter, and the exterior of your home is the first thing potential buyers will see. Enhancing your curb appeal can make a significant difference in attracting buyers and increasing your home's value.

Consider simple improvements like repainting the front door, adding potted plants, trimming hedges, and ensuring the driveway and pathways are well-maintained.

3. Create More Storage Space

Buyers are often looking for ample storage space in a home.

Consider adding built-in shelves, installing closet organisers, or utilising unused nooks and crannies for storage purposes. By maximising your home's storage potential, you can increase its appeal and value.

4. Update Lighting Fixtures

Good lighting can transform a space, making it feel brighter and more inviting. Consider updating outdated lighting fixtures with modern, energy-efficient alternatives.

Pay attention to both indoor and outdoor lighting, as well-placed lights can highlight architectural features and create a warm and welcoming ambience.

5. Freshen Up with a New Coat of Paint

A fresh coat of paint can do wonders for a home's appearance. Choose neutral and modern colours that appeal to a wide range of buyers.

A fresh, clean look can make your home feel more inviting and well-maintained, potentially increasing its value.

Mid-Scale Renovations for Added Value

If you're willing to invest a bit more time and money into your home, mid-scale renovations can yield substantial returns. Consider the following projects that can significantly increase your home's value:

1. Open Up with an Open Floor Plan

Open floor plans have become increasingly popular, as they create a sense of spaciousness and promote a more connected living experience.

Consider removing non-load-bearing walls to create open spaces that flow seamlessly between rooms.

This renovation can make your home feel more modern and desirable to potential buyers.

2. Revamp Your Bathroom

Bathrooms are another critical area for potential buyers. Consider updating fixtures, replacing outdated tiles, and improving the overall aesthetics of your bathroom.

Adding modern touches like a rainfall showerhead or a double vanity can elevate the space and increase its value.

3. Increase Energy Efficiency

Energy efficiency is not only good for the environment but can also be a significant selling point for potential buyers. Consider upgrading your home's insulation, installing energy-efficient windows, and investing in energy-saving appliances.

These improvements can reduce utility costs for future homeowners and make your home more appealing in the market.

4. Create a Home Office or Study Space

With the rise of remote work and flexible schedules, having a dedicated home office or study space has become increasingly important for buyers.

Convert an underutilised room or area into a functional workspace with built-in desks, shelving, and adequate lighting.

This addition can add value to your home, especially in the current work-from-home era.

5. Improve Outdoor Living Areas

Outdoor living spaces have gained popularity as homeowners seek to maximise their usable square footage. Consider creating a comfortable outdoor living area, such as a patio or deck, complete with seating, lighting, and landscaping.

This addition can extend your living space and make your home more desirable to potential buyers.

Large-Scale Renovations for Maximum Impact

If you're willing to undertake larger-scale renovations, you have the potential to significantly increase your home's value. These projects require more time, effort, and financial investment but can yield substantial returns:

1. Add an Extension

Adding square footage to your home can have a dramatic impact on its value.

Consider adding an extension to create additional living space, such as an extra bedroom, a larger kitchen, or a family room. This renovation can cater to the evolving needs of modern families and significantly increase your home's value.

2. Convert Unused Spaces

Unused spaces like basements, attics, or garages can be transformed into functional living areas.

Consider converting these areas into additional bedrooms, home gyms, or entertainment rooms. This renovation maximises your home's potential and can add significant value.

3. Create a Master Suite

A master suite is a highly sought-after feature for many buyers. If your home has the space, consider creating a spacious and luxurious master suite. This can include a large bedroom, an ensuite bathroom, and a walk-in closet.

A well-designed master suite can elevate your home's value and appeal.

4. Increase Energy Efficiency

Investing in renewable energy sources like solar panels can not only reduce your carbon footprint but also increase your home's value.

Buyers are increasingly interested in energy-efficient homes, and the cost savings associated with renewable energy can make your property more attractive.

5. Landscaping and Outdoor Improvements

A well-maintained and visually appealing outdoor space can significantly enhance your home's value.

Consider landscaping improvements like adding a garden, installing irrigation systems, or creating outdoor entertainment areas.

These additions can transform your outdoor space into a beautiful oasis and increase your home's overall appeal.

Working with Professionals

While some home improvements can be DIY projects, larger renovations often require the expertise of professionals. When undertaking significant renovations, it's crucial to work with reputable contractors, architects, and designers who can guide you through the process and ensure the highest quality results.

Seek recommendations from friends, family, or local real estate agents to find professionals with a proven track record of delivering exceptional work.

What Adds The Biggest Value To a House?

The largest value-added improvements to a house typically stem from significant renovations that address key areas of appeal for buyers. This includes adding square footage through extensions, creating master suites, updating kitchens and bathrooms, enhancing energy efficiency, and improving outdoor living spaces.

These renovations can significantly increase a home's value by appealing to modern buyer preferences and addressing essential aspects of functionality and aesthetics.


Increasing the value of your home requires careful planning, strategic decision-making, and a balance between your budget and potential returns.

By considering the tips and suggestions outlined in this guide, you can make informed choices that will enhance your home's appeal and market value.

Remember to research the current estate market in your area, consult with professionals, and prioritise renovations that align with buyer preferences. With thoughtful improvements, you can maximise the potential value of your home and set yourself up for a successful sale or a more enjoyable living experience.


Stuart is an expert in Property, Money, Banking & Finance, having worked in retail and investment banking for 10+ years before founding Sunny Avenue. Stuart has spent his career studying finance. He holds qualifications in financial studies, mortgage advice & practice, banking operations, dealing & financial markets, derivatives, securities & investments.

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