How to maximise profit on your property

Know your buyers

If you know what kind of buyer is likely to be interested in your property, you'll be able to pinpoint the improvement projects worth spending money on. To be certain you make money, always give the buyers what they want, not what you want!

What buyers want differs from region to region, town to town and street to street. To pinpoint what projects make money in your area, you need to do some investigative research!

The three key factors to establish are:

1. What common improvements people have made in your area
2. What these improved properties sell for
3. How much these improvements will cost you to make

If you watch your local property market closely, you probably already have a good idea of this. If you don't, this is where an estate agent can come in quite handy.

Given the chance, an estate agent will wax lyrical about 'ceiling prices' and 'buyers tastes' for hours (if they think they'll bag you as a client in the not too distant future). So make it your aim to speak to three estate agents in your town.

Book an appointment to see the owner (if it's an independent) or the branch manager (if it's a corporate). An estate agent who really knows their stuff will take the time to show you sales particulars of improved properties and explain how they compare to whatever else is on the market.

Your goal is to get them to show you proof that an improvement project will make a profit!

What projects will really add value?

The trend at the moment is for more space. In our ever-increasingly overpopulated towns and cities, these are the real money-spinners (but they will involve building work). First, you need to ask yourself if you can you stand the disruption of builders, navigate the planning process and find architects and builders you can work with. If you can, you stand a good chance of increasing your wealth substantially.

Here are some more classic projects that over the years have shown to add value:

• Turning a single bedroom into a double bedroom (increasing it in size to at least 2.7 x 2.7sqm).
• Adding an en-suite (or second bathroom) to a two-bedroom property.
• Increasing the floor area of a two-bedroom property so it becomes a three-bedroom / two-bathroom property.
• Increasing the floor area of a three-bedroom property so it becomes a four-bedroom / three-bathroom property.
• Taking a two or three-bedroom property and converting the loft into an extra bedroom and bathroom.
• Adding off-street parking to a property that has none.
• Gaining planning permission for any of the above projects.

At the House Sales Advisory you will learn how to get the best from estate agents, Online conveyancing solicitors & mortgage lenders. You will also find free guides on property valuation, selling property privately and how to deal with cash house buyers.