How Renovation Affects Property Value

  • 3 years ago
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Increasing the value of your home is more straightforward than you might think. In fact, basic home improvement can add significant premiums to your home. So if you’ve lived in Dubai or Abu Dhabi for a while and you’ve bought yourself a home, you should consider renovating your home to increase your home’s value.

The best way to boost your home’s value is to plan. You should complete the redesigns purposely instead of spontaneously. That way, you can ensure the best returns on your Dubai real estate renovation. Most importantly, you should go slowly, take your time, and understand that it’s not a marathon.

Homeowners almost always find the biggest returns when they renovate patiently. You should consider the following options for Dubai real estate and Abu Dhabi real estate:

Estimate how much your renovation will cost

Figure out how long the renovation will take to complete

Obtain expert advice from real estate professionals to ensure you take the best steps

If you’re thinking about selling the home, speak to a real estate agent and create a sales plan

The above are all excellent places to start. But, as you’d expect, the process of renovating your home is more detailed than that.

This article will give you a clear understanding of how renovation affects your properties value if you’re in Dubai and Abu Dhabi.

How Renovating an Old Property Will Give it a Competitive Advantage to Sell at a Premium

Homebuyers always love properties that have extra amenities, better facilities, and homes that are in pristine condition. In turn, they will pay a premium and leave the homeowner with a nice profit. If you consult a professional real estate advisor and work with an excellent contractor, the smallest renovation will help your home impress homebuyers and add a premium when you sell the property.

Here are some things that you could change inside your current property to sell it for a premium:

1. Deal With Any Structural Issues

Structural issues are a problem for many homeowners. Hopefully, when you purchase the property, there’ll be zero structural issues. However, for many homeowners, issues can arise years after the purchase. Common problems may include rising dampness, structural cracks to walls, insect infestation, missing or broken roof tiles, a collapsed floor, and bowing walls.

Any of these problems could dramatically reduce your home’s value if you don’t undergo renovation before selling the property. Of course, many homeowners aren’t aware of these ongoing structural issues. But that’s why it’s an excellent idea to consult a professional advisor for Abu Dhabi real estate or Dubai real estate. handle

2. Undergo a Kitchen Makeover That Adds Value

You might be wondering, do I have to spend a lot to add a premium to my home? The answer is no. A simple kitchen makeover can add tremendous value to your home because an attractive, sociable, and clean kitchen is essential to homebuyers and surveyors. However, before you decide to replace an entire kitchen or make any structural changes to the space, you’ll need to consider fundamentals such as the shape and size of the kitchen.

Thankfully, kitchen renovations are often modest investments. Yet, these investments can yield superb returns. Furthermore, tiny changes like changing your floor tiles and providing better lighting can add a significant premium to your home’s value. Then again, replacing unit doors or changing the worktops can also add excellent value. All in all, your kitchen is a perfect place to begin if you want to start a renovation to your Dubai real estate.

3. Consider An Easy Bathroom Renovation

Your bathroom is the perfect room to renovate if you’re looking to sell your house for a premium. Homebuyers and surveyors adore an excellent bathroom that stands out from the crowd. But, how do you add value to a bathroom?

Here are some tips to add value to your bathroom with ease:

Ensure that your bathroom has at least one shower because it’s essential to many homebuyers

Make sure your bathroom floor is clean and hygienic. Creating a new bathroom floor can add excellent value to your home just by painting the tiles.

Replace any existing sanitaryware that you’ve somehow chipped, badly stained, or has lost colour over the years. Even the slightest change to the sanitaryware could add a significant premium to your home.

A bathroom is similar to a kitchen — a modern investment that often yields excellent returns when you put your house for sale.

4. Consider Redecorating Your Home

Did you think renovating your home meant changing the walls and building new rooms? Of course, you could go down that route, and it will add superb value to your home if you do it properly. But did you know that simple redecoration of your home can add a premium to your property?

Interior design is fundamental in today’s housing market. You should consider redecorating your home if you have peeling paint, squeaking doors, mouldy sealants in the bathroom and kitchen, loose tiles, dripping taps, broken windows, cracks in your flooring, and squeaky stairs.

Furthermore, if your property looks dated, you should consider redecorating your home. If you hire an excellent contractor with strong DIY skills, or perhaps even an interior designer with an eye for modern styles that sell, you’ll add a significant premium to your home.

Other Renovations You Could Consider

Placing new windows in your property to give better lighting and stronger aesthetics

Updating your electrical and plumbing systems

Invest in solar panels

Add an extra bedroom

Redesign your garden

Add a new staircase

Build a driveway

Create clever storage ideas

Add another bedroom for extra value

When Is The Best Time To Renovate A Property?

Many people suggest the best time to renovate a property is when money isn’t an issue. However, many of us can only dream about having a limitless budget. So, you’ll need to plan a budget and figure out the best time to proceed forward.

Unfortunately, many homeowners procrastinate on the notion of renovating their property and waste valuable time. There are various costs that you need to consider before you decide to renovate your property, and these may include:

A refundable deposit before you obtain the No Objection Certificate (NOC)

Administrative fees (often between Dhs1,000 to Dhs3,000 per application

If you’re thinking about extending your balcony, increasing a built-up area (BUA), or changing structural walls, you’ll need approval from the DDA, usually costing around Dhs700

Your contractor will also need an entry permit.

There are many more factors which we will discuss in this article. The truth is, there’s never really a good time to renovate your property. However, if you have the finances, you should do it sooner rather than later because you’ll add extensive value to your home.

A real estate professional can help you learn how much a simple renovation could add to your Dubai or Abu Dhabi property today.

The First Steps To Renovating Your Home

Before you begin renovating your house, you’ll need to take some essential steps to ensure the renovation runs smoothly. Here are some everyday things you need to consider:

1. How To Pick The Right Contractor

You should check the previous work of a contractor before you select your choice. Furthermore, you should ask as many questions as possible and try to visit an active site to see how the contractor works.

If the contractor gives you suggestions based on their previous experiences, that often means they’re considering any issues that could arise on your project and how to work around them. That’s always an excellent sign.

2. What Is The Schedule Of The Renovation

The schedule is very important. Many construction companies fail because they can’t stick to schedules and face added costs. In contrast, many homeowners who fail to agree on fixed costs before the work begins, find themselves with extra charges because the job takes longer than expected.

You must ensure you have an agreed schedule for the renovation if you’re hiring a contractor. Moreover, what if you’re doing the renovation yourself? Again, it’s important that you plan ahead and understand the potential issues that may delay your renovation completion.

That may include the time taken for the paint to dry or to change floors. You’ll also need to consider if you’re going for engineered floors or hardwood floors because that will determine the length of the renovation process. Do you have pets? If so, you’ll need to consider where your pets will go during the renovation process. You can hire a pet service in Dubai to look after them while major work is happening to your Abu Dhabi real estate or Dubai real estate.

3. How Much Will The Renovation Cost

Firstly, you should get all the costs upfront from your contractor. Secondly, ask to see samples of the fittings and materials the contractor will install to ensure the quality is on par with your costings and brief.

You can also request a make-good defect liability period — often 12 monthsto ensure the contractor will fix any issues should they arise within the 12 months after completion. In turn, you’ll prevent any unwanted costs if the contractor makes any mistakes or fails to deliver high-quality standards. Unfortunately, and it does happen, some contractors do lousy jobs, which renders the investment useless. That’s another reason — among many — why you need to request a defect liability period.

Renovating just one room in Dubai can be costly if you don’t get the best deal, but it helps if you already have a budget. Therefore, set yourself a budget, and make sure it’s not a budget that breaks the bank. Remember, you should always plan for additional costs. Unfortunately, far too many homeowners fail to set a budget, spend too much on the overall project, and then encounter additional costs. That’s a massive problem.

The goal is to strike a perfect balance. Renovations should be a long-term project, and money shouldn’t be too much of a worry. Nonetheless, if you set an excellent budget, consult the very best real estate advice, and employ good contractors — you’ll add value to your home.

4. What Are The Typical Payment Terms

As you’d expect, your payment terms are very important in Dubai. Typically, there’s a 40 per cent on contract signing and a 50 per cent payment upon almost full completion of the project (often 90 per cent completion). Then, there’s the final 10 per cent post snagging.

What’s more, if you’ve requested a custom order and specific materials, the contractor may ask you for a larger advance. Therefore, you should understand what’s in the bill of quantities (BOQ). You’ll also need to discuss variation orders (VO). So ensure you have quotes and a well-documented arrangement before starting.

5. What Licenses Does The Contractor Need?

The contractor will likely need a DED license instead of a free zone license. That will ensure that the contractor is accountable. In addition, the contractor will need a valid trade license with all the correct categories for the work they’ll complete.

Furthermore, if you’re looking to undergo internal home modifications, the contractor may need to alter electrical works. If so, the contractor must register the electrical works with the DEWA. Again, hiring an expert real estate advisor can ensure your contractor does an excellent job and meets all these requirements in Dubai and Abu Dhabi.

The Best Questions To Ask Your Contractor

Ask to see all permits – Before you sign any contracts, you should ask to see all permits. That includes insurance documents, the company’s legal right to operate, and the company’s legal right to finish your project.

Get a clear and concise perspective – You need everything to be completely clear before signing any contracts because many contractors will want to confirm all details before the project begins. Unfortunately, that may cause conflict if any changes require having to redo completed work.

Be aware of any additional costs – You must ask the contractor for ballpark costs if there are any additional costs once the renovation begins. That’ll prevent you from getting a shock mid-way through the process.

Figure out how the contractors will manage the project – That way, you’ll know how the contractors will manage the on-site staff, so you won’t be left to do it.

Contact District Real Estate For Advice On Renovating Your Home

If you’re looking to renovate your home and sell it for a premium in Dubai and Abu Dhabi, we would love to assist you. District Real Estate prides itself on expert real estate knowledge, customer service, and professionalism. We have a team of experts to help you make smart investment decisions.

Feel free to contact us for free via our toll-free number on 800DRE. We will give you all the help you need to renovate Dubai real estate and Abu Dhabi real estate.

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