As a homeowner you shouldn't naturally assume that renovating your property will mean that

As a homeowner you shouldn't naturally assume that renovating your property will mean that you'll increase its value and reap rewards when it comes to selling. Not all renovations will add value to a property. And if they aren't carried out well, they could result in your having to drop the asking price when selling the property. The main reason for making renovations should be because you want them—any thought of what value they might add to your property should be secondary.

Knocking down walls to create a bigger space is one modification homeowners often think might increase the value of their home, but this should only be done if it's desperately wanted. Reducing the number of rooms in your house may make it less attractive to potential buyers with children, as they will appreciate the separate spaces additional rooms could offer (especially teenagers to whom privacy is particularly important).

There's also the danger of going too far where renovating is concerned. Unless you live in a remote area with no neighbors within a 50 mile radius, there's little point in renovating your property in order to increase its value to more than 20 per cent of the value of the surrounding houses at the top end of the market. Your neighbors' properties will always have an influence on the value of your house.

Never install a swimming pool in order to add to the value of your house. Only the truly dedicated should consider such a move, as this is one improvement unlikely to give the homeowner a return of any more than 10 per cent of the cost of installation. In fact, some home-buyers could be put off buying a property with a pool, especially if they have young children. And those who don't will undoubtedly take future maintenance costs into consideration.

However, there are some renovations that are likely to give homeowners a return on their investment when it comes to selling. Adding an extra bathroom can add value to your home, providing it's not installed at the expense of a bedroom. And if your house is big and has five or more bedrooms, then converting a bedroom into a bathroom could very much appeal to potential buyers.

Extending the living space in a house, whether it's converting a loft into an office, or building a conservatory, will add to the value of your home. But this is a specialist job and will probably require planning permission and a draftsman to draw up the necessary plans. Similarly, buyers are often seeking off-street parking, so adding a garage is another improvement that should increase your property's value.

Renovations should be done for more than just financial rewards. There are a number of smaller, much less costly improvements any homeowner can make in order to help sell a property, such as hanging flower baskets to brighten the exterior of a house, replacing cracked bathroom tiles, and covering worn old sofas with throws and cushions. These are small improvements requiring little expenditure that can help sell your house quickly and at the asking price—without the additional worry of whether you'll get to recoup the cost of a recently installed new bathroom.