The popularity of home improvement television shows and the success of DIY big box stores is a testament to the interest in remodeling and updating. Many homeowners fantasize about moving walls, replacing counter tops, or finishing the basement. But what home improvements pay off at resale? Is marble tile a good investment? Will installing hardwoods help your house sell?
I've spent a lot of time viewing houses with home buyers and there are comments that I hear time and time again. Here is what you can do to improve the value of your home:
1. Fix it. This may seem obvious, but I can’t tell you how many times I've seen new stainless steel appliances under a leaky roof or new slate floor tiles cracking because the foundation of the house is falling apart. When buyers are looking at a house, seeing something that is broken is a red flag. It’s not just about the simple fix of reattaching a downspout to a buyer. It’s a signal that the house is neglected. Before you start any remodeling, make sure that your home is in good working order. And don’t forget the little things that you've adjusted to and learned to live with, like that door knob that falls off when you turn it wrong or the toilet handle that you have to hold down.
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2. Replace it. When people fantasize about home improvements, they don’t usually have visions of heat pumps or water heaters in their heads, but old systems are a major concern for buyers. If you have a remodeling budget, the biggest priority should be updating the aging systems on the house. This includes all the boring stuff like HVAC, water heater, and plumbing and wiring if needed. Most home inspectors consider about 15 years the end of life for the major home systems, so if yours are getting up there, you will want to consider replacing them. Also, you can get some of the biggest bang for your buck in replacing siding, the roof, or old drafty windows. Home buyers are scared by a house with aging systems and, like you, they are not fantasizing about air condensers. If a home needs updating, buyers are much more likely to buy a house that needs cosmetic work.
3. Add it. Adding livable space to your home is a great way to increase your property value. This is especially true if your home is lacking something that is a must-have for many buyers, like a second bathroom or a garage. Other great ways to add some space if you’re a little short of square footage are finishing the basement or adding an outdoor living area like a patio or deck. If staged correctly when the house goes on the market, outdoor space can be a major asset. For example, with the addition of an outdoor dining table, a nice patio can compensate for the lack of an eat-in kitchen. However, when adding space don’t make one of these common mistakes:
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- Make sure that all work is properly permitted. Unpermitted work can be a deal-breaker when selling a house, but the temptation is great because getting a permit takes extra time and money. A lot of contractors will tell you that it’s not necessary, but that’s just from their perspective. Some buyers may not care, but you will be eliminating a large percentage of potential home buyers that do.
- And one more thing that I see all the time that always makes me cringe; Do not turn your garage into a den! Please! No buyer has ever said, “I really want my home to have an awkward garage conversion that isn't properly heated or cooled and juts strangely off the side of the house.” But most buyers would like to have a garage.
4. Plant it. When your home is on the market, the outside of the house is basically an advertisement for what’s inside. Although most home buyers find their home on the internet these days, they are still likely to do a drive-by before making an appointment to view the inside. If the yard is overgrown or there are trees growing out of the gutters, buyers will never even cross the threshold. Improving the curb appeal of your home will help you sell it. And landscaping is relatively inexpensive. A new little flower bed or an updated mailbox can go a long way in improving the way a house looks from the street. In terms of return on your home improvement investments, landscaping is one of the most surefire ways to get that money back.
5. Update it. Finally! If you've taken care of all the other issues that I've discussed above, you’re finally ready for the fun stuff! But not so quick! Even when you’re ready to start updating your home, you should be careful about where you put your money. You may dream of a giant jetted tub to relax in after work, but steam showers are currently more popular and would add more value to your home. You may like pink floral wallpaper, but chances are the bachelor buying your home won’t. If you are updating your home to add value, it’s best to stick with updates that are neutral, crowd-pleasing, and consistent with the style of your home. Doing a $50,000 kitchen makeover just doesn't make sense in a $150,000 house. Your market cannot support that much of a value increase. Conversely, if you have a half million dollar home, buyers will expect to see natural stone surfaces like granite and marble. Putting in new laminate counter-tops would just be a waste of money. Also, don’t fight against your house. If you have a funky contemporary home, don’t put in a country kitchen. If your home is traditional, super modern high gloss cabinetry is probably not a good fit. Your tastes may have changed since you bought your home, but the home hasn't. Don’t try to make it into something it is not.
As always, if you’re thinking about selling your home, you can contact me to help you get your home ready to list and sold. Visit me on the web at Corners Realty Group.