The classic way for homeowners to increase the value of their home is by remodeling existing rooms, or adding on more rooms.
Some choose to build recreation rooms while others add new appliances, fixtures or cabinets to add liven up the space and make the home more attractive to potential buyers.
The question is…
When do you stop sinking money into a home and buy a bigger one? And how much rehab is too much when it comes time to recovering remodeling costs through a home sale? This can be challenging to anticipate and figure out!
For example, if you have just spent $1,000 remodeling your living room and did not expand your small bathroom, the chances of increasing the number of interested buyers are slim.
With these concerns in mind, we can offer a few tips for those struggling to add value to their home through remodeling.
Remodeling Your Home
Always protect the character of your home! Nothing sticks out more than a new addition that is in a completely different architectural style. Be consistent. Recognize your home’s character and stay within its framework.
The most financially rewarding areas to remodel are usually the kitchen and bathrooms. Newly re-done cooking spaces and cabinets can attract more buyers, plus command a slightly higher price than something else comparable on the market. Simple repairs that are made to last will bring you the biggest returns on the sale. (We also discuss how simple, minor repairs go a long way here).
According to the National Kitchen and Bath Association, updated bathrooms are the most popular attraction for new homebuyers. Today the most popular additions for younger buyers are also updated baths and showers. But be sure to install modest, solid amenities. It is easy to quickly over-spend on bathroom fixtures. Keep it simple!
Buyers are typically more interested in above-ground living space, and not basements. Swimming pools can be a poor investment if installed for the sole purpose of increasing a home’s value. As it is rare that the cost of a pool will be recovered in a home sale. It can also be a negative feature for potential buyers with very young children. (Think safety).
Replacing worn carpeting, tiles and wood floors can give your home an immediate advantage over similar properties in the area. Updating paint colors in all areas of your home can also prove beneficial. It is often recommended that you use neutral colors; such as beige and off-white when adding new floor and wall coverings. Fewer buyers will turn away because of differing tastes.
Stay simple with your remodeling and look at your home as though you are the buyer. Chances are that if you find the upstairs bedroom could be brightened by a larger window, potential buyers will probably feel the same. Don’t go overboard. Concentrate on improving two or three deficiencies in your home. The time and money you spend adding quality to your home will be rewarded with greater profit at selling time.
In the future we hope to include more posts that describe specific examples of remodeling a home. What kind of remodels have you done on your home? Do you feel that the project added significant value to your home? Write a comment below, or tell us on Facebook. If you tweet it to us we will retweet it!
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