The acquisition of a property, for investment purposes or personal affairs, coincides with a lot of complex decisions. Investors, and owners alike, are tasked with implementing home improvement strategies as they see fit. Residential developers must evaluate potential exit strategies, determining which improvements willmaximize their returns. Conversely, owners intent on living in the recently acquired home are faced with an entirely different dilemma. They must create a functional and personalized living space.
Common sense dictates that these goals are synonymous with one another. Home improvement is a particularly good investment strategy in today’s market. However, too many people become complacent when faced with this challenge. Not all “improvements” add value to a home. In fact, some may unintentionally detract from the price.
A recently acquired property has a tendency to represent a blank canvas; a clean slate that owners can manipulate to their will. However, this freedom of expression may serve as a blessing and a curse. Agents and appraisers say they regularly see homeowners make changes that don’t increase the value of the home by much, if at all. Some renovations or alterations can even drag down the value of a home.
While additions have the ability to add value to a property, there are several improvements that should be avoided. They are as follows: