Home Improvement 4 House Value; Mistakes Part Six
Good morning! We talked about High Tech House Wrecks in Part Five of Home Improvement for House Value, this morning I'd like to talk a little bit about adding "special purpose rooms".
"Special Purpose" Rooms
Many people have the impression that additional rooms naturally increases house value, well, not necessarily. My business partner and I work with not only a lot of first time buyers interested in Southern Ohio real estate, we also work with a lot of investors when these clients finish their work some turn around and want to sell.
I can tell you firmly, if you're going to add rooms, but you're intention is to sell at a profit down the road, stick with kitchens, bathrooms and if needed, bedrooms.
Again, this series of posts is for those that want to buy now and sell the home down the road for more money, but if you intend on living in the home that's also an investment you have to consider how long you'll live there, and what it cost to return a home to universal appeal if you've made some changes to suit your personal taste.
Movie rooms and special "rec" rooms don't go over as well as you'd think with a home on the market. Many buyers are still on a smaller budget than what they would like to be, and naturally you'll be asking more money if you have an additional "bonus" room. If you're planning to sell in a few short years and make a profit, you need to shoot a shotgun at a barn-side and not aim a dart at bulls-eye when it comes to marketing and who the home will appeal to.
Extra rooms allow for "more square footage" in the listing remarks, however, if most buyers are on a budget and they themselves don't plan on living in the home for more than a few years they often view the cost of the "bonus" room as a negative. Still, a smaller but faithful supply of buyers that can afford and want such features does present itself every year, just not as many. So you could go through with such a project, just be prepared for a longer wait on the market up to having to lower your price for a smaller return.
If however, you notice around the neighborhood that media and bonus rooms or additional "recreation" rooms are a common feature and it's something you want yourself, by all means, but consider the cost and unless you're one, hire a professional.
If you'd like personal advice or if you're looking to buy or sell a home on the Southern Ohio real estate market, give me a shout or contact my business partner Marty Snyder. We buy and sell dozens of homes each year; clients come first.