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A home is arguably one of the largest financial investments a person will make in their lifetime. While property values over time are determined by national variables, the economy and local market conditions, the care and upkeep of a property is also a crucial element toward achieving a solid re-sell. Whether you are planning on adding more rooms to create extra space, upgrading your kitchen with new appliances or are thinking of putting your home on the market, it is important to know how you might increase the value of your home.
Tips to Upgrade Your Home
Kitchen Makeover: Out of all the rooms in the house, the kitchen is the most popular to remodel. According to Remodeling Magazine, money spent to upgrade a kitchen produces the highest return on investment. "Hot" kitchen makeover trends include adding dual sinks, cooking stations, extra-long dishwashers, under-cabinet lighting, warming ovens and wine coolers.
Bathroom Fixer-Upper: Upgrading a bathroom is also a sound choice and will usually provide a significant return on investment. Large bathrooms are typically on the top of the list of priorities for those seeking to purchase a home. Adding skylights, glass block windows, ceiling fans and sunken whirlpool baths are also attractive selling features. If you don't have the room to expand or to accommodate larger appliances, or you don't think you'll be living in your home long enough to enjoy the changes and/or see a return on this kind of investment, stick with neutral, mid-builder level updated cabinetry, refreshed flooring and shower/tub, or a new sink and toilet.
Room to Grow: Adding a room or two, such as a spare bedroom or a study, is a significant home improvement that you will be able to take advantage of every day. In addition to the much-needed extra space, it can also potentially provide you with a good return on your investment when it comes to selling the property.
Landscaping the Lot: A professionally landscaped yard can certainly increase the "curb appeal" or desirability of a home. In fact, beautifying your lawn can be one of the most inexpensive home improvements. Additional simple landscaping projects include trimming and edging the grass, manicuring the trees and shrubs to open up the view of the house, removing any dead plants and planting flowers to brighten up the yard.
Repair Jobs: While many homeowners may want to update and remodel their kitchen, if the roof needs fixing or the chimney has to be reappointed, then they should prioritize these necessary repairs over any cosmetic changes. This applies to both sellers and those who plan to stay in the home for years to come, as these essential repairs must be taken care of before they cause the house to lose value. It is vital to look after the minor problems such as a leaky faucet or a loose cabinet to ensure that your house doesn't undergo any long-term damage. As soon as you notice a problem, fix it since this will help avoid a larger expense later on.
Cosmetic Touch-Ups: A paint job, new double-paned windows and new carpeting will increase the price of a house virtually dollar-for-dollar. Neutral colored paint and eliminating clutter can make a world of difference. However, don't go overboard with home improvement projects that will push a house too much above the current average value of homes in your neighborhood. It is important to make sure that your home has standards that are in-line with the other houses in the neighborhood, but you do not want to price yourself out of the market.
Home Improvement Professionals For Hire: Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and interview them - checking is critical. The most important quality to look for is trust, not initial price.
Funding Options: There are a number of options for homeowners looking to upgrade their homes, including a cash-out refinance, a home equity line of credit or a second mortgage. Homeowners can contact a mortgage company of their choice for current interest rates and mortgage prices, repayment options, and for professional mortgage advice.
Which Renovations Truly Boost Home Value?
If you build it, they will come. But will they buy? Renovations can be the determining factor in a sale. Homeowners are spending more than ever on remodeling - a record $88 billion in the year ended September 1998, according to the Harvard University Joint Center for Housing Studies. But which renovations truly increase the market value of a home, versus those renovations that increase the comfort of a home's inhabitants?
Kitchens and bathrooms tend to top the list for remodeling according to Doug Mason, Sales Associate in Plymouth, Michigan. "Dollar for dollar, you get more return on your investment by updating these two living quarters. Of course, improvements vary based on the individual home. If something, such as a roof, is worn or in shabby condition, it may hurt a sale more so than a fabulous kitchen remodeling will help."
Other surveyed Sales Associates note that there are other improvements that might increase the marketability of a home, but won't necessarily increase its sale price. Two improvements many homeowners choose to add are upgraded landscaping and swimming pools. Both of these, however, won't necessarily add value and, in some cases, can deter potential buyers. For example, homeowners can pay between $2,000 - $15,000 for the same landscaping job, but a home buyer may not be able to tell the difference regarding the amount of money spent. Furthermore, that beautiful landscaping might be covered with snow if the house is put up for sale during the winter months or it might become frail and brittle-looking during a too dry summer. Homeowners who are looking to add an in-ground pool should view a pool as an investment in quality of life. The value of a pool is measured more in terms of the enjoyment of having one as opposed to measurement of a good return. While in some areas of the country, pools can limit the number of potential buyers, in warmer climates pools can often help attract offers.
In addition to large renovations, there are options for those seeking to make improvements for a quick sale. Interior and exterior painting can dramatically refresh a tired-looking house. New windows, siding and gutters can also help a house sell faster and add to its curb appeal.
If sellers are able to do one thing in terms of renovations, Mason recommends keeping it clean. "Get rid of overly decorated wallpaper and add a coat of neutral paint. It makes your home more appealing to a potential buyer."
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