There are a few things that every homeowner should understand. Not everything that makes a home nice will increases its value as much as you hope. That’s not to say that it’s a mistake to do certain improvements but you should understand that some improvements will increase the value much more than others.
A good example would be adding a well thought out family room versus building a deck. 9 times out of 10 the deck would probably not increase the value of your home as much as that family room addition would!
Remember, not everyone has the same taste or interests. If you wish to invest some money to increase equity or be able to sell your home for more here are 6 projects to consider carefully if your sole goal is to increase value.
A nicely landscaped yard is a great selling point but too much is too much. Some buyers may consider the maintenance too be overwhelming if the property requires too much pruning and may even have the need to hire a professional. Sure, great landscaping will definitely get attention but over doing it could scare some people away. While it may be a selling point for some buyers it generally will not increase the price they are willing to pay. Keep it simple, neat and attractive.
To Swim or not to Swim? – That is the question
While some people enjoy swimming, the price and constant maintenance of an in-ground pool may quickly dampen the mood. Some home buyers consider a swimming pool to be a danger to young children and possibility a liability. In addition the cost of installing such a pool can be from $10,000 to $100,000 depending on your taste and a pool of any size requires maintenance. The bottom line is that a swimming pool may cost more than it will increase the value of the home. Be sure to do a little research before deciding on this investment. If however you love swimming, than go for it but just be aware that it is not necessarily a “money maker”.
Don’t Overdo It
Regardless of what improvements you decide to make in your castle always keep in mind that the average selling price in your neighborhood will always affect the value of your home. A home with a helipad won’t make much sense in an area where the average cost is $175,000! Invest wisely and don’t spend so much that you’ll never get it back. If a person is looking for a million dollar home, they will be looking in a million dollar neighborhood.
Carpet is NOT what it used to be
Things change and although wall-to-wall carpeting is nice to some it is completely the opposite for others. Today most people prefer hardwood floors. That’s not to say that you need to tear out all of the carpet in your home! It does mean however that this is an investment that you will probably never recover. Keep in mind that even buyers that prefer carpet have their very own color and style in mind and that may not be what you have chosen. Again, carpet does little to increase the worth of your home in dollars.
Make it Match
The workmanship in your home should be equal throughout. An elegant and expensive dining room means little if there is an outdated kitchen. Try to keep the different parts of your home on an “even keel” to maintain the flow. Also keep in mind that “specialty” rooms are appreciated most by you, not others. That media room that you’ve always dreamed of is a perfect billiard room for the next person! In other words such an improvement may do little to increase value.
Necessity does not Count
The rule here is if it can’t be seen it’s not a big deal. Sure, you and I understand that new plumbing or a new roof is important but it’s not very exciting is it? Obviously maintaining your home is even more important than its appearance but the truth is that such projects are considered necessary by others and they will not be willing to pay more just because your home is in good shape. Actually, the opposite is true. They will be willing to pay less if the property is not in good condition! This is a simple lesson to learn, such expenditures in your home are maintenance, not an investment.
If it’s your time to do some upgrades I suggest speaking with a professional realtor in your area first. We know what is in demand at the time and what may not reap the reward that you hope for. Of course things change so don’t ask now and do a year later!