In the Real Estate World there are a multitude of factors that go into selling a home. The exterior is key to getting any buyer to even consider the inside. If people drive by your house and are not impressed, then they are not going to go inside. Here we will talk about all the various home improvement projects and how they effect value of a home and sell-ability.
Home improvement projects should always be planned by and executed by professionals that have experience in the real estate field as well as design. This is to maximize the remodeling projects to their fullest possible return on investments, while providing joy to the homeowner as well.
Kitchens are where people spend most of their time in the home, which would be why it tends to be the most judged room in the house. Dated kitchens are the number one killer of all deals. They typically, if done right, will result in a large return on investment and a shorter selling period, which results in higher bids than anticipated. This however always depends on the neighborhood in which you are selling and what houses in your caliber look like and/or have sold for in the last six months. You, by no means, want to be the best looking home on the block. You simply want to keep up with the Joneses. In other words, don’t put a $80,000 kitchen in yours, or any home in which the market cannot bear the selling price. Unless you plan on staying there forever, then in that case call Blackwood.
At the end of the day, the numbers shouldn’t be the focus of it all. After all, this is your retreat,
and it should bring you joy; You can’t put a number on that. For example, here is a list of projects and their joy rating and their recoup percentage. The ‘joy’ and ‘return’ don’t always match up.
The percentages don’t show a ‘loss’ by any means. That percentage is made up with the time you enjoyed the renovations as well as the value of a short sell period. These are also subjective ratings.
Adding a new bathroom may not have as high of a recoup rate than others but it improved your quality of life and will probably make the sale happen faster. Weighing a typical three-bedroom one bath house vs a three bedroom and one and a half/ two-bathroom house where you don’t have to share a bathroom may be held at a higher value for most buyers and throw you into the next price range tier. It is all about understanding who the buyer may be for your certain neighborhood or style house. Planning goes further into design than just picking tile.
New flooring is always a safe update to a home and will always have a return as well as improve quality of life. New or even refinished flooring can bring the entire home into a new era or style suited for a higher price tag overall. For buyers; roof replacement in the east would rank higher on the list than those in the Midwest. The average homeowner recouped 96.3 percent of the cost as compared to a whopping 17.1 percent in the Midwest. Updates that rank high on the cost vs value report for exterior work would be adding a front porch to create the ‘Welcoming’ look that buyers look for. Another improvement with a high return would be siding a house. It adds the value of ‘low-maintenance’ upkeep which usually lies high on the cost-conscious buyers list. An exterior landscape project can run on the higher end but the ROI for that is 100 percent if not more. Doing it right is important as well, which Blackwood happens to specialize in.
Now that we have discussed the factors of larger scale projects. The smaller less glamorous projects can have just as much of an impact on the sale of your home and your quality of life. Changes such as new hardware, paint, or light fixtures can transform a space for you. Replacing a vanity in a bathroom, simply replacing the front door, putting insulation in the attic, or putting in a new garage door all fall under this low-cost high return category. The return on these can almost always be between 80-110 percent or more if done right. In other words, don’t personalize too much. Not everyone will enjoy your Mackenzie Childs Toilet, or sink bowl. If you are going to personalize with anything Mackenzie Childs, make sure you don’t need tools to remove it, but if you do, call Blackwood.
There are many ways that we can improve your space while being cost conscious as well as proactive for the sale of your home. Give us a call and we can show you how big transformations don’t need to break the bank; Or simply just to make your forever home your dream home, we love and welcome projects of all calibers.