Don't Over Improve
Remodels with granite countertops, high end tile and a commercial kitchen are all wonderful improvements for a homeowner’s pleasure but the typical Buyer of many market areas will not be willing to pay a premium for such upgrades. For a homeowner to recoup the most from a remodel the materials should stay in line with the quality of the typical home of the area. This is especially true in the current market when many Buyers are looking for value over luxury.
Take Lot Size into Account
Adding improvements such as a large outbuilding or a swimming pool can be detrimental when it comes time to sell, specifically on smaller lots when these improvements cover a large portion of the yard space. There are many Buyers who value a yard for recreation, kids and pets so such large improvements can often times negatively affect a home’s marketability.
Expect a Low Return On Investment for Some Improvements
Some improvements are fads of the time and others may just be out of place for your region. This is especially true of swimming pools in moderate to colder climates as well as ponds, waterfalls and large water features which require a fair amount of maintenance in their upkeep. Themed landscaping and intricate garden space also add little to a home’s market appeal as each Buyer will have their own preferences. These items should be added for a homeowner’s enjoyment and not for the resale value as rarely do they add substantially to a homes market appeal or value.
Use Trusted Contractors
Ask family and friends for good contractors they have used. It can be a huge mistake to just call up a contractor as you will likely find out the true workmanship of that contractor only after they have started the job. I’ve heard story after story of contractors who completed shoddy work, walked off jobs and some who just took the money and never came back. Typically a good contractor will not be the cheapest bid you receive but the good workmanship, timely completion and honesty you receive in the process will pay off in the long run with a higher return on investment and a quality of workmanship which will last.
Keep to the Plan
Have plans and specification drawn up and keep to them. A skyrocketing remodel bill is often the result of a homeowner who changes their mind and alters a plan after a contractor has begun the work. Each time a contractor changes their time schedule, purchases or return materials and juggles employees based on what improvements you would like, expenses are incurred and time is lost which drive up the final bill.
Go Green
When possible and economically feasible do what you can to use “green” materials and use contractors that follow eco-friendly construction techniques. The number of “green” contractors is limited, but growing, which can often result in a slightly higher cost upfront. These costs can usually be recouped over the long haul in the way of lower utility bills and a higher marketability once it is time to sell the home.
Joel Tax
Real Estate Broker
RE/MAX Community Realty
http://www.joeltax.com
http://www.crescentappraisal.com
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