Calculating the value of an extension
Calculating extension value means looking at extra floor area, improved layout, market demand and total project cost.
There is no single percentage that applies to every home.
A realistic value estimate compares the current home, the planned improvement and local sale prices.
Start with comparable homes
Look at homes in the area with similar size, layout and finish.
The value of extra metres is higher when buyers in that market actively need the added space.
Account for quality
A high-quality extension with good daylight and matching materials adds more appeal than a basic add-on.
Poor detailing can reduce the expected return.
Subtract the full project cost
Include VAT, drawings, permits, finishing, kitchen adjustments and landscaping when calculating net value.
The emotional value of staying in the home also matters, but it should be separate from resale value.
Summary
The best value estimate combines local comparables, build quality and the full cost of the project.
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