Over the course of many years, we have been conditioned to view almost any home improvement or repair as something which automatically increases the value of the home, as something that will guarantee a great ROI upon selling it. This is not always true.
When deciding whether or not to add a new addition, fix up the basement, purchase new appliances, or other home improvement projects, it is important to ask yourself: do I know that this project will add monetary value to my home? Is this repair a necessity or a nicety? Are these new appliances going to fill my needs and make me happy, or am I buying them because I think that they will add value to the home when I sell it in a few years? There are certain repairs, renovations, and upgrades that just will not help you make a sale.
Let’s take a walk through your home and look at things more closely.
New Carpeting?
While this could appeal to some people, home buyers are often turned off by it because they will feel like they need to have carpets professionally cleaned before moving in. They also might be conscious of health hazards due to allergens that gather in carpets. These thoughts and more will cross the minds of home buyers making their decisions.
If you have good flooring, show it off. You’re much better off with hardwood flooring that can be topped with area rugs or carpeted over later if the home buyer chooses to do so.
It’s a bedroom, not a zoo. If you want to have pets, have pets, but be careful to avoid making structural changes like adding built-in cages or aquariums. This is an example of “improvements” detracting from the value of your home because unless you find another Dr. Do little to purchase the home, you are going to have to convert it back to normal before anyone else will buy it. The same goes for other highly personalized conversions such as a cold pantry or wine cellar. Anything you do that is truly unique to you needs to be done in such a way that it is easily undone before putting your home on the market. Otherwise, potential buyers may view these personal extravagances as expensive projects to undo, or instead make it part of the deal that you undo them yourself.
Where is the Garage?
If it looks like a garage, potential home buyers are expecting it to be a garage. If they walk in and find that it’s been completely changed into something else that can no longer have a car stored in it, they will not be too excited. Homebuyers enjoy not having hail damage their vehicles, not cleaning off ice or snow on winter mornings, not leaving their car at the mercy of night-time pranksters — or worse. Instead of a “man cave,” you will find greater success with a real garage.
That does not mean that you cannot create that family room, theater, or gym in your garage. You can — if you set it up in such a way that the garage can become a garage again with minimal cost. For example, don’t carpet it.
If you want to cover the garage floor, do so with large area rugs, or if you want to use carpet, roll it out onto the surface without attaching it with glue or permanently installing it in any other way. If you have built-in storage cabinets, leave them as such instead of dismantling them to hang up the big screen.
The famous kitchen
If you plan to live in your home for many years and you want to enjoy an updated kitchen, go for the greatest kitchen you can afford. However, if you plan to renovate the kitchen in hopes of raising the home’s value and increasing your profits at its sale, be warned. On paper, kitchen renovations are usually only worth about half of what homeowners spend on them — even less if you go too gourmet.
New granite countertops, new tile flooring, a new brushed stainless steel sink, and a sophisticated cabinet system with a hideaway refrigerator — these things and more might be your dreams coming true, but that doesn’t make them the appraiser’s or potential buyers’. If remodeling is a must, approach with caution and avoid overspending.
In general, the kitchen is the heart of the home, so you’ll impress potential buyers to have a nice one. However, you will not realize a 100% ROI on a kitchen remodel. No one is telling you to hang onto the plaster or old ceramic sink, but it would be smart to tread with caution.
Taking it up a Level?
Do you need more room to fit your family for a few more years? Is your mother-in-law moving in so you need to build a special suite for her? There are valid reasons to build additions onto your home, but if you are planning on moving out anyway and the addition will only be a temporary bandage, hold off on making expensive changes.
If your house is the smallest in your neighborhood and everyone else has a second story, you have a better chance of recouping your costs than if it’s the other way around.
Home buyers want to be comfortable in the home and with their surroundings. If you are adding onto your house in good taste so that it does not stand out like a sore thumb, the appraisal will likely go in your favor. However, covering 100% of the cost of any addition is very unlikely, so don’t get your hopes up.
How Can I Help?
If you’re looking to improve your home’s value but don’t know where to begin, I’d be more than happy to give you advice about what buyers in your area are most attracted to when they’re searching for their next home. I can also give you more advice about simple ways to increase the value of your home without spending a lot of money.
If you’re looking for a dedicated agent to handle the sale of your home or help you purchase your next one, look no further. My former clients can attest to how hard I’ll work on your behalf. Contact me today to find out how much your home is worth, and I’ll send you a free copy of my book that shows home sellers how to get top dollar for their homes in the shortest amount of time!
Email: natalia@firststaybc.com
Contact: +1 778 317-6393
Natalia Garbuzova – Lease-Up Rental Agent
