Home Upgrades That Increase the Sales Price Of Your Home
When you decide to complete a major home improvement project you want to make sure that the value you add to the home is closely connected to the project's cost. There are many upgrades that pay for themselves and allow you to sell your home for a higher price. Conversely, there are improvements that can cost a great deal without ever really adding any real difference to your home's resell value. Let's take a look at a few of the considerations, projects, and pitfalls when it comes to home upgrades that increase the sales price of your home.
How Long Will You Be In the Home?
Understanding the amount of time that you plan on living in your home is very important when it comes to planning for a home improvement. If you are simply getting the home ready for sale, then the improvements need an immediate payback, or have a big impact on how buyers perceive your home versus the others on the market. On the other hand, if you are planning to stay in the home for another 5 years or more, then you have more flexibility because you can factor in the amount of enjoyment that your family will get from the home improvement. In this scenario, an upgrade that doesn't completely pay for itself in terms of your homes final value can still be a great improvement for you and your family, and still help you to sell your home in the future.
How Does Your Home Compare To The Rest Of The Neighborhood?
Is the rest of the neighborhood full of homes with 3 bedrooms and 2 baths, while your home only has 1 bathroom? If so, the addition of a bath to bring your home in line with your neighbors will have a big impact on the final sales price. If no one in your neighborhood has a large gourmet kitchen with professional appliances, then you should avoid adding one to your home if your goal is to get the most re-sell money for your improvement. Creating the most expensive home in the neighborhood will not help its future sales price. Additionally, it is important to understand that updating an older home will have a much bigger impact on resell when compared to improving a newer home.
Best Home Improvement Projects That Add Immediate Value
Now that will have an idea of what to consider when improving your home and the potential pitfalls of over improving beyond the neighborhood norm, we'll take a look at the top 3 areas of home upgrade that add immediate value and payback.
Kitchen - Whether it is a simple facelift, such as replacing cabinet doors and hardware, or a complete kitchen remodel, the kitchen is a great place to invest in your home. It is also one of the easiest places to over improve, so make sure that you set a realistic budget based on your needs and the neighborhood you live in before getting started.
Baths - Like the kitchen, the updating of an older bath will impress buyers and add immediate value to your home. New plumbing fixtures, flooring, and a vanity doesn't have to cost a fortune, but the difference to the perception of your home can be staggering.
Exterior - Curb appeal is often discussed because the buyer's first impression will go a long way towards how they feel about making your house their home. Minor improvements include trimming back the bushes that are overgrown and making sure your lawn is thick and green. These simple steps cost very little and can pay you back multiple times over the improvement cost. A larger project of repainting the exterior or replacing worn siding will make your home look fresh and new from the road.
Home improvements can have a dramatic impact on the sales price of your home. Focus on staying within your neighborhoods price range, while making smart upgrades to the kitchen, baths, and exterior of your home. This will give you the best chance of recouping their costs and increasing the ultimate value of your home.