Whether you are flipping a house or investing in upgrades for your own home in hopes of increasing value, it's important to know where you will see a return of investment and where you will not. Of course everyone will have a different idea of what increases home value according to taste and personal preference, but there are some home upgrades that have been widely agreed upon as producing a low return. We'd like to share those with you in the hopes of helping guide you in the right direction for your own home investment projects.
What is important to remember here is that bathrooms are meant to be functional and generally don't need to take priority when you're considering what upgrades to make. When a potential buyer is walking through your home they will without a doubt prefer a updated and beautiful kitchen over remodeled bathrooms. In bathroom remodels people can get carried away, often times removing functionality, which a buyer will most definitely be considering. If you are on a budget and wanting to update your home, definitely prioritize rooms where considerable time is spent like the kitchen, family room and master bedroom over bathrooms. You are much more likely to see increased home value if you focus on those staple rooms. If your bathroom is in need of being brought into this century, keep it simple. Don't over spend on marble countertops or claw foot bathtubs unless that is supported by your neighborhood sales.
There is definitely something to be said for curb appeal, well maintained or mature landscaping will draw buyers in, however it won't necessarily increase your property value. Also something to consider is that potential buyers will see elaborate landscaping as a possible negative due to the amount of upkeep involved. So if you do decide to invest in some new landscaping keeping it simple and clean is your best option.
Upgrades throughout your home and property should be consistent in order to maintain a similar style and quality throughout. High quality upgrades usually increase the value of high end homes, but not always in mid-range homes where the upgrades aren't consistent to the rest of the home. This doesn't mean that you have to remodel every room in your house, but you should keep the idea of consistency and style in the forefront of your mind when you do choose a room to update. Check with your local realtor to help determine what homes in your area are being upgraded too
Adding an underground pool in your backyard may be the perfect addition for you and your family. We suggest weighing the cost and time of installation as well as upkeep along with considering whether you will seek the time and plan events to utilize the pool. Consider the length of time you will remain in the home and will have the personal use of the pool. If you are newly considering the idea of installing a pool definitely do your research. Pools are a lot of fun and can be a great addition to a social lifestyle, however they are very costly and can often times turn buyers away, many people think pools are dangerous. If you are looking solely at resale than a pool may not be the most lucrative option and your money may be best spent on the interior of your home.
Not So Obvious Improvements
Hidden improvements, upgrades or improvements that are not visible like a new water heater or HVAC unit are necessary but it's important not to expect these to give you much return or to see your cost back at all. Buyer's will be expecting things like that to be up to date and in good condition and won't pay any extra because they are new. Improvements like these should be budgeted in as routine maintence and not as something that adds value to your home.
Basements and Attics
It may be tempting when you see all the extra space an unfinished basement or attic offers to invest in making this space usable, however most people underestimate the cost involved. Attics are generally not spacious or sturdy enough to make an adequate usable space and even if they are, there are a whole lot of issues that can arise when it comes to making this upgrade up to code, accessible and safe. Basements depending on their age can have their own slew of problems. Mold and dampness can come into play and will need to be fixed before any construction can take place for making it into a livable space. Unsteady beams and pest damage can pose an issue in older basements and will need to be factored into the cost as well. Like any remodel project weighing the pros and cons in accordance to your budget is key.
All in all, home updates, upgrades and renovations can be very costly and it is important to research the time and cost involved. Weighing certain factors like how long you plan to be in your home will likely effect what projects you do and how you do them. Before you take on a new project make sure you are considering future buyers and resale as well as being realistic when it comes to how much value it will add to your home.
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