Listing clients often ask which home improvements provide the most selling power.
For the most part, the market value of a home is determined by the sales price
of similar homes in the neighborhood and surrounding areas.
When considering the value of homes, professional appraisers use the principle
of regression and progression. The value of a large home located in an area
with smaller homes will be dragged down (regression). This is also applies to
homes with significant improvements. A small home located in an area with
larger homes will see an increase in its value (progression).
It is important to think about the principle of regression when considering
home improvements to get the house ready for the market.
The first step is to understand the current market value on the home. Your
real estate agent is able to compile a market analysis to learn what the
homes in the area are selling for. It is important to gather this information
before thinking about renovations you would like to make. Remember
when deciding on which improvements to make, the home will only
sell for the maximum sales price of similar homes in the area.
Determine which projets will give you the largest return on your investment
without putting you over the neighborhood’s threshold.
Since kitchens sell homes, a kitchen remodel may be worth it. But be
mindful of how much you put into it. For example, creating a kitchen
that you would find in a million dollar home, is not wise if you have a
$200,000 home! A minor remodel, however, may be worth it and boost
the value of your home without going overboard.
Choosing your projects carefully and knowing the highest potential
sales price will help you to avoid over-improving your house. Don’t
forget to get several bids for the work, as you will also have to factor
this in the total cost of your remodel. Most importantly, get your real
estate agent involved. Her expertise will help you to be equipped with
the best tools before putting your house on the market!
Contact Sheri Jones today to get the right tools before putting your house
on the market! Her expertise will arm you with the all the information
you need to get the most value for your house.
Sherijones2012@gmail.com 909-660-1838
#ImprovementsBeforeMarket #RealEstate #HomesBySheri
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