How to Increase Your Home's Value + A note about pricing + days on Market.
When a person is thinking about selling, They often ask, what will increase my home's value ? Will I recoup the investment i made on my upgrades and remodels I have made over the years?
In general, there are very few upgrades that will return 100% of the investment made by a seller-
HOWEVER- a BIG HOWEVER..., upgrades can help the home look better online- the place where your FIRST showing happens.
a TALE of TWO HOMES
With two homes of similar age, and style, and close in price ,the one with the upgrades has a higher probability of selling faster- When you think it through, the faster you sell, the less monthly mortgage, insurance, utilities and taxes you pay, and you move towards closing. Thus your higher net at closing. The other uncomfortable truth ( I know you do not want to hear this_:(.
: the longer a home is on the market, the seller typically nets LESS of the initial home list price.
For example, for a home on the market 120-145 days, the seller usually gets 87-88% of what it was first listed it at.
The longer it is on the market, the less the seller gets for it. I have crunched the numbers and done the math on our North Idaho market. Listing too high , and " testing the waters", is a strategy that many sellers want to do- They think today's market is the one we had a few years ago- that crazy one where one of the neighbors got a crazy high price for their home. That isn't where we are now. I wish it was , but the market is speaking when a home takes 60 days or more to sell, and price reductions or credits were given to get a property sold.
Mr Market, all i can say is ouch!
UPGRADES and potential % of RETURN
Even though it might be tempting, try not to over improve. Keep the value of your property within 15 to 20 percent of your neighbors’.
Project (average cost recouped, national) according to Realtor Magazine:
Minor kitchen remodel (88%) Major kitchen remodel (81%) Bathroom remodel (85%)
Family room addition (80%). Deck addition (77%)
Master suite (75%) Attic bedroom (74%)
Siding replacement (73%). Window replacement (69%). Home office (55%)
If a home only has ONE bathroom, adding another is a HUGE plus.
A 2 car garage is also something many buyers are looking for.
IMproved flooring
CLEANING- and DE CLUTTERING. FREE and really pays off for positive showings.
MAYBE items
Projects that may increase your home’s value include: substantial out buildings; and vaulted ceilings,in-ground pool; security system; sprinkler system;
there is great VALUE in mechanical items being newer-or well taken care of.
Upgrading HVAC (at minimum having HVAC serviced, and filter changed) checking AC works, being sure electrical panel meets code,
keeping roof in good repair, small plumbing repairs,
PRACTICAL IDEAS- Home Mechanicals
Some sellers have their home pre- inspected, to reduce surprises in the inspection period, that can lead to negotiating seller credits or repairs.
That home inspection can tell you where you might need to do some DIY fixing , or hire a professional, to get your home in the best shape for selling.
Also, looking at a pre listing property condition report, ( required for a lisiting, to be filled out by the seller) the Property condition report can act as a punch list of structural and mechanical things to chek over, and attend to.
Style upgrades like new paint, replacing older light fixtures, can give a home a fresh look.
NICE for YOU- but may NOT add VALUE
These may not add value to your house: above-ground pool ( happens once in a while in North Idaho) installing ceiling fans. ( replacing with newer fixtures does help a home show better) a water feature or garden pond.
These items may not increase the dollar value, but things like new fixtures can help an older home look more modern, and give the idea that other improvements and care has been taken in the home.
A few LAST NOTES on style and MATERIALS
Remodel with mass appeal in mind. Wild or dark colors are not mass appeal- Today's colors are neutral,and slightly warm tones are the classic look.
The over dominant Gray era of a few years ago is OVER.
Use durable, quality materials.
what do you think of these?
thanks for visiting me at Ella sells Idaho!
ella