Are you a current homeowner who wants to fix up your home and expect to see a return when you go to sell it in the future? Do you think you’ve got what it takes to successfully flip houses in the Denver housing market? While the current market has potential for owners to make some money while cleaning up homes in disrepair (while adding value to neighborhoods), it pays to be smart about just how much you put into any one fix-up job. Keeping up with the Joneses can be detrimental to one's savings account, but surpassing them can prove even more damaging.
The first thing to consider when remodeling any home is the value of neighboring properties. If you spend too much money on a new bathroom or a kitchen upgrade, your home will stand apart, but not necessarily in a way that will translate to a higher selling price. The advantage may come with a sparked sale, as a chef’s kitchen will certainly appeal to a buyer who is a chef. You just need to be aware that certain upgrades, while potentially beneficial, may not be in the form of money because they don’t appeal to everyone.
Those who are smart about investing the right amount of money into remodels understand that the market doesn’t care what you paid for the house, nor does it matter how much you invest in the property - it all comes back to market value. You may really love those granite countertops or glass backsplash tiles, but some sellers are improving their homes so much that they end up pricing themselves out of the market.
The best advice is to get a feel for the market before you do any work on a home. A good way for potential sellers to do this is to study the homes selling around their property - paying attention to the square footage and its amenities. Also, consult with a professional real estate agent who can pull comparable homes for you to support the sale value of your home (and offer you a realistic picture of what the market will support).
Your Realtor can give you some great advice to help you focus on the improvements that will bring you the most return. Professional real estate agents spend time every day with people who are buying homes - they know what the average buyer is looking for, and what doesn’t impress them. Another source for determining where to put your fix up money is the Cost vs. Value Report that can give you a good idea of the relative merits of different projects.
If you’re looking for some expert advice for buying or selling a home in the Denver area, look no further than the Bandy Team! Our team can guide you through all phases of the home buying and home selling process in Denver. We can help you find a great investment property in Castle Rock’s Castlewood Ranch, sell your fixed up home in Littleton, or buy a dreamy golf course house at the Pinery in Parker. We are here to help you every step of the way!
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Until next time,
Marianne Bandy, Team Leader
The Bandy Team
Keller Williams Park Meadows
BandyTeam.com - Denver Real Estate & Homes
720-466-3790
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