Which Renovations Increase Value?
February 22nd, 2008 categories: For Homeowners
I have settled within myself that I will not be selling my home for quite some time.
That being the case, I have spent the last year doing a few things to my house that help me to enjoy it a lot better. I started out by putting tile floors in the kitchen, changing all of the old light fixtures, upgrading the knobs on my cabinets, putting hardwood on the main level, and replacing the upstairs carpet. I still have a lot to do to make it exactly what I want it to be. But for now I am feeling pretty good about its appearance.
Its important to keep in mind when deciding which home renovations that you will do to weigh the cost vs. the added value it will bring to the home. Just because you spend thousands on putting in a pool does not mean that you have added thousands to your homes value.
In a declining market I have found that some renovations won’t add much value to your home, but it will set your home apart from those that don’t have any additions. In other words, its not guaranteed that someone will pay 5k more for your home because you have granite counters compared to your neighbor who does not. However, it could mean that a buyer chooses your home over your neighbor because of those upgrades.
Here are a few things to considering when considering what upgrades you should do….
1. Where do you live? Putting in a pool in Florida can be a great idea. Could be a little much in Vermont.
2. How old is the home? I sold a home built in the 1940’s. Bathrooms and closets where not as much of a high priority then as they are now. Expanding their size is a great idea. Homes built over 15 years ago will need a face lift.
3. What are the neighborhood norms? Lately I have noticed that certain home owners in Fairfax County have built huge homes in neighborhoods with small ramblers. Bad move. Your home is only worth what your neighbors homes are worth. The same goes for renovations. There is no need to go above and beyond what your neighborhood can bear.
4. What is the price range of your home? If you live in a high end neighborhood you will want to stay with luxury upgrades such as granite. If you live in a very modest neighborhood, stay with modest upgrades or you may not get your money back.
; ?>/images/MatoChiclet.gif)
Remodeling a master bathroom is likely to come back to you when you sell, particularly if you focus on the master bath, however there are no guarantees that you’ll get back your 5 - 10K investment. Important to carefully choose improvements that up the value of your home and not ones don’t!