How to spot a property with potential

With the current property market being what it is, there are hordes of potential buyers keeping an eye out for the best property investment. And with the market being so saturated and currently very competitive, buyers are finding the need to act fast, more so than ever before. 

In a climate like this, it can be difficult to see the wood for the trees, so if you’re currently on the hunt for your next investment opportunity, you might consider our top tips for spotting a property with potential. 

Here’s a list of things to keep an eye out for and consider when viewing properties, so that when the right one comes up, you can act fast and get the most out of your investment. 

Is there potential to extend the property’s footprint? 

Whether it will involve an attic or cellar conversion, or by building outwards, extending a property’s footprint will always add value and see a greater return on your investment. 

When it comes to extending a property, it’s important to consider functionality and how best you might be able to use the additional space to make the property more saleable. For example, can you see the property benefiting more from a kitchen extension, perhaps one which allows for the installation of a utility room or closet, or an extension to the living room, perhaps even with the building of a conservatory? 

Is there an opportunity to add an extra storey? 

An extra storey might be added with a cleverly laid out loft conversion, or perhaps by adding to an existing ground-floor extension to create a full two-storey extension. 

While viewing a property, it’s a good idea to look around at the surrounding houses to see if any have dormer windows or full extensions, as you’re more likely to have planning permission granted if other homes on your street have already had the work done.  

Are there opportunities for investment into surrounding land? 

Whilst a property’s plot may initially give the impression of being too small for your needs/vision, be sure not to dismiss it straight away, as there may be opportunities for you to purchase adjacent land. 

If this is possible, it could mean a dramatic increase in the property’s value, so it’s always worth asking your estate agent for local intel, or even approaching neighbours to see if they may be willing to sell any of the land that falls within their property boundaries. 

Could creating an open-plan living space be an option? 

When it comes to buying an investment property, it’s all about getting creative and making the most out of the space, and building an open-plan kitchen/living room could be a great opportunity for opening up the space to add value. 

While at the viewing, you might consider speaking to your estate agent about the potential for creating an open-plan living space, and work out whether any walls that would need to be removed are  load-bearing. Remember, if a wall that you intend to remove is load-bearing, you’ll need to replace it with a structural support, which will increase the overall cost of the work – something to bear in mind when it comes to budgeting. You must also remember to consult with the local authority with any structural improvements that you may have in mind, as any work will need to be carried out in line with current Building Regulations. 

Could works be carried out to improve the layout and make the space more liveable? 

Homes with a tricky layout can often be some of the best investment opportunities, as the potential to add value with a bit of work is very high. 

If you can fix the layout, there’s a huge potential for profit. Whether it’s by creating a more open-plan living space, reinstating walls, or moving doorways and shuffling things around a bit, most layout problems can be solved, and fairly painlessly, too. 

Before booking your viewing, it’s a good idea to take a look at the property’s floor plan to see if there are any glaring issues in the layout that you can rectify. With some imaginative thinking and a little bit of elbow grease, a badly laid out property can be a gold mine. 

Would investing in an updated bathroom and kitchen increase the property’s appeal and value? 

The kitchen and the bathroom are, generally speaking, the main rooms that attract potential buyers to a property. When searching for a property, buyers like to see the kitchen and bathroom checked off their list as requiring little to no work. Whilst updating these rooms will cost you money, you are more than likely to make that money back in the value you add to the property. 

Is there the potential to add a downstairs bathroom or WC? 

If a property has space to install a ground-floor toilet, the potential to add value is high. 

If you get creative with the space, you might not even need to knock down any walls or have an extension built; it could be that a small WC would fit under the stairs, in a large cupboard, or by partitioning a room. 

Plumbing is the biggest obstacle to consider in this scenario, so be sure to ask an expert before you let this be a deciding factor in your property purchase. 

What can be done with the outside space? 

Another thing to consider if the interior of the property is relatively small – is there potential to use part of the outside space to extend the living area of the property? 

There may not be room for a home office, chill-out space or hobby room inside the property, but might it be possible to construct a self-contained structure/outhouse in the garden to increase the property’s usable floor space? 

Also consider ways you can make such a structure usable throughout the year, such as by installing electricity, heating, or a wood-burning stove. 

Are there any period features you may be able to restore? 

Restoring a period property to its former glory will most definitely allow you to put a larger figure on the price tag when it comes to selling the property further down the line. 

Reinstating cornices, coving and skirting boards, replacing fireplaces, or giving original floorboards, bannisters and doors a bit of TLC are all great ways to increase the value of a period property. 

How does the property rank in terms of its energy efficiency? 

When it comes to making an investment, sometimes a property’s largest weaknesses can be the best areas to focus on, as they may hold the greatest potential for increasing overall value. 

Whilst a G-rated EPC may have alarm bells ringing for you, remember that there is potential for dramatic improvements to be made, which will likely lead to a sizeable profit if they’re done properly. 

It might require you to fork out more in the initial investment by upgrading the heating system, installing a new boiler, or insulating the loft and any cavity walls, but making changes such as these will make a massive impact on the property’s resale value. 

Our top tips for maximising a property’s potential: 

Try to look beyond bad decor and dated furniture, fixtures and fittings 

It can sometimes be difficult to overcome first impressions and look beyond bad decor, however not doing so can lead to you losing out on a great investment and, potentially, a lot of money. 

Whilst a poorly decorated property can be an instant turn-off, if it sits in a great location, with good transport links and recommended schools close by, and it offers a great living space, it may be a good idea to invest. 

There are a host of things you can do to improve the interior and exterior aesthetic of a property, so if you’re met with unattractive decor and a messy, unkempt garden at a viewing, try to look beyond and see the potential in the space. 

Consider buying on a busy road 

These properties are almost always cheaper to buy due to their location, so it may be possible to buy a fairly sizeable house on a busy road for a bargain price, and then make improvements to the interior and exterior, such as installing double glazing to reduce noise, or considering ways to improve privacy and accessibility, to add considerable value to the property when the time comes to sell. 

On the hunt for your next property investment? 

Enlist the expert help of the Pearson Ferrier team! With many of our team members having grown up in the local area and gained years of experience in selling properties, there’s no better team to trust. With over 25 years of experience as your local property experts, we like to keep our finger firmly on the pulse of the UK property market and are always happy to advise on the potential investment opportunities. 

Ready to start shopping around? View the latest homes to hit the market in your area, or get in touch with our team today.