A good example would be
adding a well thought out family room versus building a deck. 9 times out of 10
the deck would probably not increase the value of your home as much as that
family room addition would!
Remember, not everyone has
the same taste or interests. If you wish to invest some money to increase
equity or be able to sell your home for more here are 6 projects to consider
carefully if your sole goal is to increase value.
Landscaping Overkill
A nicely landscaped yard
is a great selling point but too much is too much. Some buyers may consider the
maintenance too be overwhelming if the property requires too much pruning and
may even have the need to hire a professional. Sure, great landscaping will
definitely get attention but over doing it could scare some people away. While
it may be a selling point for some buyers it generally will not increase the
price they are willing to pay. Keep it simple, neat and attractive.
To Swim or not to Swim? – That is the question
While some people enjoy
swimming, the price and constant maintenance of an in-ground pool may quickly
dampen the mood. Some home buyers consider a swimming pool to be a danger to
young children and possibility a liability. In addition the cost of installing
such a pool can be from $10,000 to $100,000 depending on your taste and a pool
of any size requires maintenance. The
bottom line is that a swimming pool may cost more than it will increase the
value of the home. Be sure to do a little research before deciding on this
investment. If however you love swimming, than go for it but just be aware that
it is not necessarily a “money maker”.
Don’t Overdo It
Regardless of what
improvements you decide to make in your castle always keep in mind that the
average selling price in your neighborhood will always affect the value of your
home. A home with a helipad won’t make much sense in an area where the average
cost is $175,000! Invest wisely and don’t spend so much that you’ll never get
it back. If a person is looking for a million dollar home, they will be looking
in a million dollar neighborhood.
Carpet is NOT what it used to be
Things change and although
wall-to-wall carpeting is nice to some it is completely the opposite for
others. Today most people prefer hardwood floors. That’s not to say that you
need to tear out all of the carpet in your home! It does mean however that this
is an investment that you will probably never recover. Keep in mind that even
buyers that prefer carpet have their very own color and style in mind and that
may not be what you have chosen. Again, carpet does little to increase the
worth of your home in dollars.
Make it Match
The workmanship in your
home should be equal throughout. An elegant and expensive dining room means
little if there is an outdated kitchen. Try to keep the different parts of your
home on an “even keel” to maintain the flow. Also keep in mind that “specialty”
rooms are appreciated most by you, not others. That media room that you’ve
always dreamed of is a perfect billiard room for the next person! In other
words such an improvement may do little to increase value.
Necessity does not
Count
The rule here is if it
can’t be seen it’s not a big deal. Sure, you and I understand that new plumbing
or a new roof is important but it’s not very exciting is it? Obviously
maintaining your home is even more important than its appearance but the truth
is that such projects are considered necessary by others and they will not be
willing to pay more just because your home is in good shape. Actually, the
opposite is true. They will be
willing to pay less if the property is not
in good condition! This is a simple lesson to learn, such expenditures in your
home are maintenance, not an investment.
If it’s your time to do
some upgrades I suggest speaking with a professional realtor in your area
first. We know what is in demand at the time and what may not reap the reward
that you hope for. Of course things change so don’t ask now and do a year
later!
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