3 Home Improvements That Add $$$’s To Your Home’s Value…and 3 Others That Don’t
When it comes to upgrading your home, you may be unintentionally spending your money on home improvements that won’t pay you back.
Now upgrading your home is important if you want to maintain…and even increase…it’s value. But knowing exactly what will bring you the best return on your investment of time, energy and money can be confusing.
There are whole industries that exist because conscientious homeowners like yourself want to maintain and even improve the value of their home. A trip to the local Home Improvement store quickly fuels your imagination…and even more quickly leaves your head spinning as you sift through hundreds of options.
Where do you spend your money to get the biggest return?
Should you worry about a future resale value? Or do you follow your HGTV-driven dream?
It’s pretty easy to dump a large amount of cash into ANY home improvement project.
And since the Census Bureau tells us that the average person moves over 11 times in their lifetime, you can start to see why expecting a decent financial return on your home improvement investment should at least play a role in making these decisions.
3 Home Improvements You Can Bank On
When you’re considering a “home Improvement project” you naturally think BIG $$$’s…
And that can be scary…
Your may even think that if it’s not a big, expensive project, it may not be worth your time.
It may surprise you then that home improvements that make the biggest difference in your home’s value are some of the (relatively speaking) least expensive of the bunch.
Rule of Thumb: Renovations bring a better return on your home improvement project than additions.
By investing your time, money and energy in these projects, you can be assured your home’s value will stay in line with the market.
Exterior Improvement – First impressions matter and when a buyer falls in love with your house before they ever get inside, you know you’re on the right path. Spending extra time and effort on the overall exterior attractiveness your home be noticed by people passing by on a regular basis.
Can you imagine someone telling you “I’ve admired your home for years and have always said I’d love to own it if it ever becomes available?” What a testament to your attention to this important area!
- The front entry – Spruce it up with a new steel door and attractive plants and other decorations to warm it up and say “Welcome Home”
- Paint – nothing leaves a negative impression faster than peeling paint. Make sure any painted areas are clean and securely adhering to the surface. Inspecting for any failure and correcting on an annual basis should be prominent in any exterior maintenance program.
- Landscaping – to a home is like make-up to a woman…it enhances and spotlights the most attractive features and down-plays or distracts from the less desirable. Some of the most incredible changes can happen when small improvement are carried out…if you lack inspiration, you can get plenty here as these formally “wallflower” homes are transformed from “meh” to “marvelous!”
Minor Bath Renovation – Baths have become the “sexy” rooms and the money spent on minor renovations (using existing footprint) can add substantially to your homes appeal, enjoyment and ultimately it’s value.
This can be accomplished by upgrading the vanity, sink and faucets, installing a tile surround in the tub or shower area and purchasing a “statement” mirror and light fixtures.
Minor Kitchen Renovation – if your kitchen doesn’t need a design makeover, a minor renovation can do more for boosting your value than any other room in the house.
Today’s trend of painted cabinets can quickly ( and inexpensively) bring your kitchen up-to-date while the addition of new counter-tops, SS appliances and fashionable tile back-splash and plumbing fixtures can transform your kitchen into a show-stopper.
3 Home Improvements That Cost More Than They’re Worth (to Your Home’s Value)
Whether is a dream kitchen or a fancy outdoor patio outfitted with the latest in entertainment requirements, the truth is, when planning this type of home improvement project, you could be left holding the bag when it comes to a value increase.
Appraiser’s often say “Cost does NOT equal Value” and it is especially true when looking at luxury upgrades…frequently referred to “over-improvements” by appraisers when they don’t conform to the neighborhood/area norms.
Not that they are bad decisions, especially if it makes your every day life more enjoyable AND you plan on staying put for several years.
Just be aware that the next buyer may not be willing to pay for this type of upgrade.
Luxury upgrades, like the ultimate chef’s kitchen or over-the-top spa bath. These types of improvements can be considered “excessive” by the market and are often not worth the price they cost when you decide to sell.
There is good news though, if this is a project that is definitely in your future plans.The longer a homeowner stays in a property, the greater the opportunity for a return on investment
Adding on (or up) to get more space – adding on can seem like a great alternative when you are ready for more room… but not ready for the headache of selling/moving.
And it can be, if thoughtfully done and carefully planned. But the cost, at a national average of $250-$300/sf, can far outweigh the inconvenience and benefits if you plan to sell in the next 5 years.
Converting Garages and Bedrooms – latching on to underutilized spaces, such as a garage or spare bedroom and converting them to suit your needs can serve a great purpose…while you are living there. In fact, it probably seems like the best solution all the way around!
But it’s a permanent solution to a temporary problem…
When it comes time to sell, removing a bedroom or garage from the mix can actually deter would-be buyers from considering your home. A garage or the number of bedrooms is very often more important to them than a weight room or home office.
3 Pricey Home Improvements Every Buyer Expects
These are often referred to as “invisible improvements”…Invisible in appearance but certainly not to your bank account.
Home buyers expect these items to be in good, working condition when they purchase and are seldom willing to pay more for improvements…even if you have just replaced the aging furnace, upgraded the plumbing…or re-wired the house
Your home’s systems…
- Heating and Cooling
fall into the maintenance category. Keeping them upgraded when necessary will maintain the value of your home. Not having them up to snuff can actually cause your home to be worth less when the defects show up during an inspection.
Roof – A new roof falls into a grey area…right between Maintenance and Improvement. While not as impressive or as noticable as an eye-popping kitchen makeover, it does put the crowning touch on any home
A new roof is both decorative and functional.
By replacing an aging or leaking roof, according to Remodeler’s Magazine 2018 Cost v.s. Value Report you can actually expect a 60% ROI for your investment in the our area.
Be Informed…and Realistic
There is no right or wrong home improvement choice…only the best one for you and your family.
But when planning for the best return on your home improvement dollars, keep these facts in mind…
- Simpler, lower-cost projects tend to return greater value.
- Focus on improvements and upgrades that enhance a buyer’s first impressions
- Kitchens still offer the most remodeling bang for the buck.
If you’re unsure about what improvements will make the most difference for your individual situation.
We’ll be delighted to share recommendations for improvements… and tips on maximizing the resale value of your home…based on today’s market conditions and your situation.