Is it Value or Marketability?

When you make improvements to your home, the question you need to ask yourself before you make any significant changes should be - Will this add to my home's value or make my home more marketable or both? 

 

Value in Real Estate translates into the dollar value of a property. The price a house sells for is considered fair market value. Appraised value is quite often the measurement lenders used to determine value.

 

Marketability is what makes a property appealing to a prospective buyer. Sometimes improvements lean more towards the marketability side than increasing the value. New windows, a new furnace or new roof all will appeal to a buyer and add to a home's marketability. Unfortunately, in most cases, it will not add dollar for dollar value to the property. Though the costs of these upgrades usually will not fully increase the value, they will help sell the home.

 

Renovations like kitchens and baths usually add to both marketability and value and tend to be closer in bridging the gap with the cost to its value.

 

If you are looking to sell soon, you should focus on the renovations and repairs that will make your house more marketable while balancing what will bring you the best return on value. There are many factors to consider when establishing a home's price, including its location, and every neighborhood has a price range. Sometimes renovations can over-improve a house for its neighborhood and limit its return on investment.

 

Before making any significant improvements to your home, it's wise to get advice from a Real Estate professional, especially if selling is in your plans for the near future.

 

 

 

 

Corinne A Fitzgerald
AHWD, CBR, CHMS, CIPS, CRS, GRI, PMN
FITZGERALD Real Estate
116 Federal Street
Greenfield, MA 01301
413-320-9509  cell/text
413-376-4433 direct office line

 Corinne@Realtor.com
 2015 President - Massachusetts Association REALTORS®
         2012 President – REALTOR® Association of the Pioneer Valley