Undergoing a major home renovation before selling doesn't always pay for itself. In this post we'll talk about the projects that are most likely to add value to your property.
1. Adding Value While we're on the topic of Adding value, let's review some projects that are cited by the National Association of Realtors (NAR) to provide the highest return on investment at resale. These projects include Kitchen Renovations (New Countertops and Appliances), New Siding and New Windows, likely recouping 80% or more of their costs at resale. Refurbished Decks, Energy Saving Improvements and Updated Bathrooms also greatly contribute to a homes value. 2. Back to the Basics Buyers expect the roof not to leak, a dry basement, solid floors, walls that are in good condition and gutters that effectively deter water away from the house. Functioning Plumbing and HVAC is commonly expected as well. If any of these basic components of the home are unsatisfactory you may not be able to ask a comparable price compared to other homes in the neighborhood. On the flip side, making an unwarranted upgrade can be risky as well. Depending on how the other homes in the neighborhood measure up, it could potentially scare off potential buyers or not necessarily increase your homes value. 3. Curb Appeal With some low cost upgrades you can help your home sell faster. Some of these upgrades include Landscaping, Fresh Paint (Interior and Exterior), Cleaned Carpets or even installing new address numbers. Lighting can be a costly element to your renovation. It's easy to overdo it or overrun your home circuit capacity. Consider installing recessed or LED lighting for a modern look. Subtlety is Key, adding a tasteful backsplash or subtle accent wall will effectively add to your homes appeal. 4. Individual Preference Individual preference projects are items that you want, but may not be desirable to other people. Game rooms, swimming pools, hot tubs, wine cellars and ponds fall under the category of Individual Preference. Home buyers are likely unwilling to pay a premium for these items and they rarely add value to a home. Replacing commonplace features like eliminating bedrooms or converting a two car garage into a game room can be tricky as well. Your Home, Your Investment No matter what project you're considering, your home is your haven. If your planning to live there for many years to come, why not add some amenities that inspire you to live more fully at home. When it comes time to sell, remember to keep your property up to par for the neighborhood and avoid any extensive projects in an effort to increase the purchase price of the property.