What Home Improvements Bring Additional $$$ When Selling

What Home Improvements Bring Additional

$$$ When Selling

You know you need to change a few things before you list your home for sale. But, what? How do you know what to do that will make an impact and what would just be wasted cash?  In other words, where do you get the most bang for your buck?  The National Association of Realtors looked at home improvements and the rate of return in sales price and determined there are a few changes you can make that will actually make a difference.

All the 2015 projects share some similarities and show the direction the trends in home building are heading. Green energy and energy efficiency in our homes are becoming more and more important. While the jury is still out about solar energy, it’s important to show your buyers that the home has good bones. So some simple servicing of the furnace and adding an air conditioning or HVAC can make a difference. Clean out the filters and make sure insulation is in place and in proper condition. Additionally, if you’ve replaced the doors and windows with energy efficient versions, make sure your buyers know this.

Of course you know the basics of giving the property a good cleaning. Inside and out, the property should be free of dirt and debris. The buyers should see an opportunity and not a project in order to achieve the highest possible sales price.

So what are the home improvements that bring the best return on investment when you sell your home?

•         Electrical systems.  One of the most important questions buyers have when looking at home is about the condition of the basics. Older homes offer value and charm, but could be hiding problems. Make sure that the electrical unit is current to existing codes and updated with current wattage needs.
  
  
•         Permits: If the property has a finished basement or other additions, obtain permits if possible. If they are unavailable, then have a professional inspection and report ready for buyers. Staircases should also meet current codes for safety.
  
  
•         Replace your front door. The front door is the first thing a buyer sees when they get to your home. The style and condition sets the tone for the rest of the home tour. Replacing the front door is simple and relatively inexpensive project. A nice front door adds to the curb appeal of your home.
  
  
•         New siding, exterior repairs and fresh paint. Old worn siding and paint is also part of curb appeal. Appraisers agree and say that a poorly maintained exterior can lead to up to a 10% loss of home value.  At a minimum, repair any damage and repaint as necessary. A larger project could include adding decorative trim in the latest style.
  
  
•         Kitchen and Bath Upgrades. Buyers love kitchens and baths. While you might not see a dollar for dollar return on the actual project, your home is more likely to sell for top dollar with an updated kitchen. Anything from a full kitchen remodel to a simple countertop replacement can invite the buyers to linger in the kitchen…which is the heart of the home.
  
  
•         Deck and Patio additions. Outdoor living has become a normal part of home ownership. As homes have decreased in size over the years, the desire to extend the family living areas to include outdoor living has grown. A simple deck could cost as little as $8/square foot and might be a do-it-yourself project. Add some plants and a BBQ to illustrate the enjoyment of your outdoor space.
  
  
•         Add living space. By far the most expensive option, but adding living square footage to your home is the best way to increase value. Consider putting the finishing touches on the basement or use that empty attic space and create a bonus room or extra bedroom. Additional bathrooms are also great ways to increase sales price.
  
  
•         2+ family properties. Investors are looking for separate electrical meters and boilers for each unit. Doing this before listing can increase sales price considerably.

You want to sell your property for the best possible price. As with any aspect of the sale process, before you do anything, it’s best to talk with your agent. Get their advice and look at recent home sales to see what updates have brought the best sales price. Then you can determine if making the investment will create the higher sales price.

Oh…and I’m available anytime. J