In our Remodeling series, we discuss several options for updating/remodeling your home with intentions of staying and enjoying them. In this post, we talk a little about updates for the home you are trying to sell.
The first thing to consider is Return on Investment, investors know this as ROI. Investopedia defines ROI is defined as [(gain on investment – cost of investment)/cost of investment]. In other words, as an investor, you want to make money on the money you spend. The last thing you want to do is spend $10,000 on a bathroom remodel and have it only add $2,000 to the value of the home. (This example is a negative ROI.) Check out this link to Remodelers Magazine for more information on ROI in your area… http://www.remodeling.hw.net/2010/costvsvalue/national.aspx
In the meantime here are a few suggestions:
Stay Consistent with your Surroundings: Use materials and finishes that are consistent with the look and style of your neighborhood. Using low end products in an upscale area will bring down the value of your home, likewise, putting top dollar finishes in a lower priced neighborhood will not necessarily increase your homes value.
Adding Space: If you are considering adding space to your home make sure you are not taking away from another space that may be of value to a potential buyer. Don’t convert that third bedroom into a closet. While you may love the walk in closet, having fewer bedrooms can lower the value of the home and make it less appealing to buyers. Instead, consider converting attic or basement areas.
Solid Structures: More important to most buyers than cosmetics is the structure and mechanics of the home. Make sure there are no roof leaks, plumbing leaks, electrical issues or HVAC problems before you start cosmetic updates. Buyers are more likely to purchase a home that is a solid structure and worry about updates later down the road.
Curb Appeal: Make sure plants are healthy and grass is green and well maintained. If it’s needed, add that fresh coat of paint. The outside of your home is the first impression a buyer gets… make it a good one!
We hope you have found these tips and idea useful. Check out some of our other remodeling articles for other tips: Kitchen, Bathroom, Green, Interior.