Anyone who sells a property wants to achieve the highest possible price for it. The basic requirements for this are, on the one hand, a precise valuation by experts, but on the other hand, the implementation of targeted measures to increase value.
The difference between maintenance and modernization
If you look more closely at the topic of increasing value, you should first make a conceptual distinction between pure maintenance and modernization.
maintenance
Maintenance counteracts the physical deterioration of properties and thereby preserves their value over as long as possible. For example, measures such as replacing defective windows and replacing electrical systems, floors and facades come into question.
In principle, owners should regularly check their house for defects and correct them promptly. Annual inspections of the boiler, roof, hot water system and elevator are recommended. It is also recommended that the floors and interior plaster be checked every five years. Since damage inevitably occurs to real estate sooner or later, approximately 1 to 1.5 percent of the new building insurance value should be reserved for necessary maintenance measures.
Even if maintenance measures must be distinguished from modernization measures, they still have an influence on the sales proceeds and should have a correspondingly prominent role in the long-term management of the building. In a third of cases, the achievable selling price increases by 6 to 10 percent. In 25 percent of cases, additional revenue of up to 20 percent can even be achieved.
modernization
Modernization improves the features of a property and thus its value. Typical measures include optimizing the energy quality, visual improvements and functional adjustments. This includes, for example, the installation of modern facade elements, the removal of barriers and the integration of high-quality underfloor heating.
Examples of value creation opportunities
The value of real estate can be increased in many ways. You will find an overview of the most important options below.
Energy renovation
Energy-efficient renovation is one of the most important starting points for increasing the value of real estate. If the house is poorly insulated, the heating system does not meet modern standards or drafts penetrate, there is usually enormous potential for optimization.
In these cases, an energy check should first be carried out. An expert checks the building structure, the insulation technology, but also the characteristics of the heating systems and pipes. The results provide information about where it is advisable to install new heating systems, windows and insulation materials. Comparatively inexpensive options include hydraulic balancing, insulating heating pipes and installing efficient circulation pumps. More extensive financial resources must be planned for measures such as installing modern condensing boilers.
Since heating costs can be significantly reduced with an energy-efficient renovation, it is interesting for owner-occupiers, but also for investors who want to generate returns. Since costs fall due to lower consumption, the use of the property becomes more economical on the one hand, and on the other hand it also increases buyers' willingness to pay.
Improving accessibility
The most unrestricted usability of the property is particularly important for self-occupiers. After all, real estate is a capital-intensive investment property that you want to live in effectively for as long as possible – and in different phases of life. However, accessibility is also a clear plus point for rental properties. In this respect, the issue of accessibility should be addressed at an early stage.
Factors that are important for seniors play a central role. Examples include installation options for stair lifts, widened doors, floor-to-ceiling showers and the removal of speed thresholds.
Creation of new space
Space is a rare commodity, especially in big cities. That's why every square meter counts when it comes to real estate. If potential can be leveraged somewhere, this should be done.
Unused space often exists in attics. Children's rooms or work rooms can often be set up here. New areas can also be opened up through an extension, which in turn increases the attractiveness of the property in the eyes of potential investors. Other common options for creating living space include creating basements and adding attics.
Construction of garages
More and more prospective buyers are attaching importance to a garage or carport. This means that a car requires less maintenance and is also better protected against break-ins. Some insurers even offer discounts to drivers with a garage because the risk of break-ins is significantly lower than on the side of the road. If there is enough space, an extension should therefore be considered.
The burglary protection
Burglary protection can now be implemented with relatively little effort. The potential for increased value here is correspondingly great. For many interested parties, additional security is worth paying extra. The integration of security technology should also be considered because the state promotes burglary protection measures. The most important additional equipment includes multi-point locks, motion detectors, alarm and video surveillance systems.
Conclusion – modernization is worthwhile
There are many measures that owners can use to increase the value of their property. Before selling, you should therefore comprehensively examine the possibilities offered by energy-saving renovations, expansions and the reduction of barriers. Support from real estate agents or a professional real estate report can provide good guidance.
