Home Improvements That Add Value
Putting
money into home improvements you want is not the same as investing in changes
that will increase the value of your home. Recouping costs on improvements
depends on broad factors like:
•
the
current condition of the housing market,
•
the region in which the home is
located,
•
the value of homes in the
surrounding neighborhood,
•
and the timing of the proposed
sale.
As
a comparison, according to a survey by Remodeling magazine in 2008, adding a
mid-range deck to a home in
Sometimes
Mundane Changes Are Better
Valuable
changes do not necessarily have to be dramatic. Some of the highest value
alterations are easily accomplished including:
•
Clean
and de-clutter, staging key rooms to enhance the property upon showing.
•
Repaint with neutral colors. Never
trust that buyers will be able to imagine what the home will look like
"if."
•
Replace soiled carpet. (While not
inexpensive, hardwood flooring and popular kitchen and bathroom materials like
travertine are high-value choices.)
•
Update lighting fixtures to achieve
a modern look and to keep the rooms bright.
•
Landscape and maintain the yard.
The
rule of thumb is never try to sell someone your dirt. If you can do nothing
else, put a spotless home on the market. If, however, you do have a budget for
improvements, consider the following:
Updating
the Kitchen
Real
estate experts agree across the board that homeowners who cannot afford to
update any other part of the home should concentrate on the kitchen. Buyers like
clean, fresh-appearing kitchens. At minimum, paint or put up fresh wallpaper and
update the flooring. If new cabinets are impossible, refinish the existing units
and install new hardware. Classic designs and high-quality materials are a must.
Convert
Existing Space to Something Useful
Take
dead space and make it livable, like creating an attic bedroom or a basement
family or media room. In general these kinds of improvement projects return
about 75% of the initial investment. An added bathroom will bring back about
66%, while a deck, depending on the geographic region, recoups an average 85%.
Green
is Good
Anything
that increases the energy efficiency of the home is a high-value project.
Insulated, double pane windows generally recover 81% of the costs of
installation. Whenever anything is done that falls into this category, keep
documentation on the change and, if equipment is involved, how it functions.
Also, keeping a record of utility bills that shows a calculable monetary savings
over a period of six months to a year is a definite plus.
Be
Careful Not to Incorporate Negatives
There
are, however, so-called "improvements" that can work against home
value and raise insurance premiums. A prime example is a swimming pool, which
adds nothing to the resale value of a home due to the expense of maintenance and
the increased liability incurred from potential pool accidents, especially if
children will be present in the home. In some cases, the best pool-related
improvement is to spend the money to fill it in.