A realtor approached me the other day and was very distraught. When explaining why, she told me that one of her clients decided to have some home renovations done before selling their home. They spent nearly $20,000 replacing every window in their home and found out it did very little for their home value.
This misconception happens all the time. We tend to think that no matter the renovation, there will be an abundance of added value to our homes. Unfortunately, a lot of our industry doesn't educate customers on what they should do if they want a larger dollar value for their home through renovations.
That is why we are discussing this. Direct Lenders, LLC wants to make sure everybody is informed when renovating a home. Below we will discuss the do's and don'ts when renovating your home before putting it on the market.
Do's
The infographic simplifies this information, but the four main home improvements we suggest are updating the kitchen, updating the master bathroom, finishing the basement, and renovating an outdoor patio space. When you do these updates remember that although a creative mind is beautiful we have to make sure the updates make market sense.
Improvements need to be current and include what is in style at the time. Similar to our blog post, What Adds Value To A Property?, keep in mind that location is a big deal. Where a home is located may determine what renovations need to be done.
Also, a minor makeover will most the time provide a better return on investment then a major overhaul. A key concept to remember is that a renovation needs to be determined based on what an appraiser is looking for.
Don'ts
A common misconception that ends up losing people money is that new doesn't always mean higher value. For instance, a working roof is a roof and a working HVAC system is an HVAC system.
An appraiser isn't going to investigate when it was installed, but rather if it is a functional feature of the home, such as flooring. If it serves a purpose then new or old are worth nearly the same granted their overall condition.
Also, remember what I said about windows please. One more thing, new paint isn't a bad thing, but new paint that was evidently slapped on the walls by a non-professional can hurt the value of a home.
Need More Information On Home Renovations?
Remember, if an item is expected to be within a home then the value of a home won't just elevate rapidly. We know that you are probably filled with many questions, which is a great thing. The answers are one call away. We can be reached at (877) 455-0440 and we can help you understand better on how to strategically add value to your home through the right renovations.
