The value of a property depreciates as years go by. The most substantial depreciation happens in the first year, followed by the second and the third year. By the fifth or sixth year, the property value is considerably less, could be two third of what it was when purchased. Fortunately, the steady appreciation of the value of land or the lot on which the property is developed will balance the depreciation to an extent. This is the primary reason why real estate is the finest investment option for long term gains. The value of land seldom depreciates, not even when a country is in recession.
Unless you have a property where the value of the land has appreciated exponentially or there are developments around that have led to a skyrocketing demand of homes, you would need to do something about the resale value of your property. To stem a declining resale value, you must upgrade a feature or two, fixtures or installations. Normal cleaning would increase your visible curb appeal, that too temporarily. To affect property evaluation and thus the financial curb appeal, you should consider the following.
- Get your property repainted. You can get the exteriors and interiors repainted. You can get only the exterior or the interior repainted. The more you spend, the higher would be the resale value. Painting just one room or two may not have much of an impact, although it would help in home staging.
- You should consider reroofing. A roof is one of the priciest fixtures in a home. Old asphalt roofs would not have any value. If you can get a metal or rubber roof, have it insulated and coated to resist weather induced wear and tear, then you can witness a fascinating appreciation of your property’s resale value.
- Another extremely influential fixture is plumbing. If you upgrade your plumbing infrastructure or even get some new fixtures in the bathrooms, then that would have an impact on the resale value. If you can upgrade your entire roof and the entire plumbing infrastructure, then you are poised to have an appreciation of at least 10% and it could very well soar above 20%.
- If you can attend to new paints, upgraded roof and plumbing systems, a new HVAC unit and some other utilitarian installations, then your property would easily appreciate by around 30%.
Get your property inspected and evaluated before home staging or deciding on home improvement projects.
Regina Minton
Real Estate Assistant
Comments(1)