It is a great question to ask before going ahead with it only to find out later it wasn't worth the dust, the inconvenience or most importantly, the MONEY.
Property investors and home owners can definitely boost the value of their properties through home improvements. Renovating has increased in popularity over the last decade and we see more and more of the “golden oldies” needing some major help.
I always ask my clients to make a list of the reasons they have for renovating, and also a list of what they have in mind. I then interview them to find out what their future plans include (such as how long they plan to live in the home) and to find out what they value as important to their lifestyle. In the end, the goal for me is to help people reach decisions by knowing what the cost verses rewards can be.
In many cases, owners are now spending more on the renovations than on the purchase of the property. Then again, sometimes a little paint will go a long way. Bearing this in mind, it is important to get it right if selling your property in the near future is what you have in mind. By doing it right, you could be handsomely rewarded.
Renovations must be done in such a way that it suits the taste of the next buyer. But this is not where it ends;
· Do your homework.
· Do market research.
· Consider your options and how your actions could influence the resale value of your property. The golden question, is it worth your while to renovate
· Money spent on renovations must be recouped when you sell your investment.
· If your consider extending you should make sure if it will not be more viable to sell and buy a bigger property.
· Seek advice from a real estate agent or appraiser.
· Take a good look to see if the basic structure, foundation etc. of your property is sound before you start any renovation. For example, it does not help spending money on renovating your kitchen if the roof of the property is leaking.
· Cap the amount that you will be spending on your renovations and the easiest way to do this is to find out what the best house in your street would sell for. Use this as your guide as to the maximum you should spend. According to one of the financial institutions, a home more than 15%- 20% pricier than other properties in its neighborhood will be unlikely to sell as buyers can get property in a better area for a similar amount.
· In this instance of renovation, it is not location that will count but, rather, impression.. impression.. impression!
· Be aware of trends in your area as particular renovations can add value in certain areas. Building a swimming pool might work in one area and not in another.
· Decide on the style and make sure that it suits the original style of the property.
· Don’t underestimate the true costs of renovating. Get several quotes for the work beforehand.
· Make sure that what you do is done correctly, in a professional manner and up to local building codes and standards.
· Keep receipts and warrantees on file to show prospective buyers.
If you are not considering renovations with selling in the near future, you should give it careful thought. Think about your future, and what you will be needing. Will you need extra rooms for planning a family? Will stairs work when growing older?
Where to start?
Clean and good looking is what buyers are looking for. Forget building a swimming pool the experts warns us. For the best return on your investment you should invest in renovations in the kitchen, bathrooms and garages. According to appraisers and real estate agents, the most notable areas for improvement are beautiful bathrooms, modern kitchens and garage space as these are the features that sell homes and grow value, and if homeowners are going to spend money on renovations it should be in these areas. After all, who has the last say, the husband or the wife?
Feel free to visit my website at http://www.chrisdeutsch.com/seller_resources to find more resources for homeowners, buyers and sellers.
Remember, your house is your biggest investment, so… if you are going to do it, do it right!
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