Improving for House Value
I am constantly coming across homeowners complaining about an appraiser not giving value to some upgrades they have recently made. I’ve been hearing about the state of the art sound system they installed, their all brick custom wood burning fireplace, their $9000 enclosed hot tub and so much more.
Looking to make some improvements to your home in order to increase the house value? You might find some value in this article alone.
When spending money on home improvements, you need to think logically. Ask yourself if the shoe was on the other foot, would you be willing to pay more for a home that has customized “this and that”?
A lot of homeowners may think installing that huge in-ground pool may increase value, but in reality it may not. What if the typical buyers in the area are elderly couples who do not wish to have a pool in their back yard, rather a large yard to have a garden.
Another example I have come across was a seller that installed an all-brick custom driveway that included large pillars imported from overseas. The cost to build this driveway was over $16,000, however, due to this upgrade being an “over improvement” for the area, no value was given to it because it was NOT typical for the market. In this particular area, the typical buyers were 25-35 year old newlywed couples and they did not care about a custom driveway. They just wanted a drive way to pull their cars into.
If you want to pamper yourself with fancy pools, hot tubs, Jacuzzi’s and such, don’t do it with the notion that you will be increasing the value of your home. Do it for your own enjoyment and if it helps sell your home, consider it a bonus.
In my opinion, there are 3 main areas to focus on for improving the resale value of your home.
The Kitchen – Everyone has to eat, therefore this is the number one place buyers look. Installing granite countertops, upgrading cabinets, and adding new appliances will give the kitchen a great new look and add value to your home. You may not receive 100% payback from the improvements, but your home will definitely be more appealing to a buyer and it will sell faster than the home next door that has outdated everything.
Bathrooms – Bathrooms are the second place that potential buyers will look, therefore it is very important to have that updated bathroom and not an outdated one. By simply upgrading flooring and painting the walls, you can easily give your bathroom an entire makeover. Taking it a step further, new vanities and bath/shower and even a new commode are much more appealing and desirable than the old outdated, pink and blue tiled bathrooms.
Adding Square footage – As long as the size of your home is not the largest in the area, more times than not, adding square footage to your home will help to increase the value of your home. Square footage is one of the largest factors in valuing home’s value. However, before you add that extra square footage, you might want to consult with a professional to determine if it will add value or not. Example: a small master bedroom with no attached bathroom will be less desirable and appealing to a home buyer versus a large master bedroom with an attached full bathroom. I have actually had buyer’s walk away from what would have been their “perfect home” because of the master bedroom not having an attached bathroom.
If you would like my professional opinion of the resale value of your home, give me a call today!