IMPROVEMENTS
THAT WILL ADD VALUE TO YOUR HOME
FIRST THING'S FIRST
take care of what's important
Prior to spending money, time, or energy on any "cosmetic" improvements, it is important to make sure that the "bones" of a property are in good condition. In this regard, it does not matter if you are considering a potential sale or if this is your "FOREVER" home. Ensuring that a property's roof, foundation, electrical, and plumbing components are in tip-top shape not only adds a lot of value to your home but also extends the life of your asset, an asset that, if you are like most people, is probably the most valuable in your investment portfolio.
Buyers can convince themselves to deal with certain things if they find a home in their dream neighborhood and within their budget. Taking on a home with a dated kitchen and bathrooms is much different than taking on a home with severe issues with its structural integrity. Every buyer sees value in different things but most real estate professionals will tell you that a dated home with great "bones" is much better than a cosmetically updated home that needs an entire new roof or foundation.
KITCHENS ARE KING
remember to know your market
Any real estate professional, or a simple Google search for the matter, will tell you that kitchens and baths sell homes. That is not a very well-kept secret. That being said, there are a number of items that buyers look for in kitchens that are a little more difficult to pinpoint. These items vary by market and are critical to the sales process. They can be the difference between multiple offers that drive up the price of your home and your listing sitting stale for weeks. If you are going to invest time and resources into your kitchen you should keep the potential buyer in mind. The only exception to this would be if your home is your "forever" home. If that's the case... knock yourself out! If it's not, it is imperative to keep market-specific tastes in mind when renovating your kitchen. You will never please everyone, but you can make wise choices that will appeal to the broadest audience.
CATER TO YOUR AREA'S DEMOGRAPHIC
If your home is located in an area where many young professionals are moving to start families then maybe the traditional "tan-colored" granite and "dark-colored" cabinets are not the best option. Of course, you want to replace (or refinish) the cabinets. Stay up to date on the current trends in design and invest your money wisely. We've found that MOST buyers in this demographic prefer "white" kitchens with lighter-colored cabinets and lighter stone. This won't appeal to everyone but it does a number of things. It appeals to the broadest demographic, making the kitchen seem larger and more open. Ask your real estate professional (or do a simple online search) for comps in your neighborhood. Pay attention to the kitchens of the homes and compare that to the time on the market. If homes with white kitchens (in this example) sell quickly and for more money...you are on the right track
BATHROOMS
never an afterthought
Investing some time and money in your bathrooms can go a very long way in adding value to your home. Again, it is important to keep the potential buyer in mind when designing changes but equally as important to make it functional. If it is a smaller condominium or home, adding storage to the bathroom adds a huge benefit. Pedestal sinks can look very clean and make a smaller space look bigger but they do lack the functionality of a vanity. Consider accentuating any improvements made to the kitchen as well. If you are hiring someone to refinish the cabinets in the kitchen, it might be a good idea to have them quote you on any in the bathroom. Also, there are many cost-effective vanities currently on the market at major home improvement retailers; this is most likely a project that any weekend handyman can take on by themself.
THE CONDITION OF A BATHROOM IS A GREAT INDICATOR OF THE CONDITION OF THE REST OF THE HOME
Changing out an old vanity and adding a new mirror is another fantastic way of adding value to your bathroom. Lighting plays a huge factor in beautifying the bathroom spaces as well. For smaller bathrooms, it is important to have ample lighting to make the space feel brighter. Consider removing any linoleum or old flooring and updating it with some new tile that ties everything together.
Never forget the bathtub and shower! It may not be cost-effective to replace the entire tub, but you can reglaze it for a new finish. If your shower tiles are dingy and have an old or dated print on them, there are options to sand them down and have them painted (given they are the correct material). All of these options are very cost-effective and have great returns!
FINISH YOUR GARAGE
not just for parking anymore
One of the quickest and easiest ways to add value to your home is to finish your garage. Gone is the time when a garage should look "manly" with tools everywhere and oil stains on the concrete. Many buyers now see the garage as an extension of their home. Somewhere that they can store items and even put up some walls to build an office if the space is big enough. A home can never have too much storage!
If your garage does not have finished walls consider finishing them off with the proper insulation and sheet rock. Another great improvement would be to paint the concrete with an epoxy material. This not only adds the "finished" look but also makes cleaning the space a breeze. Both of these jobs can be done with minimal investment and have the potential to add a great amount of perceived value.
A GARAGE IS SEEN AS AN EXTENSION OF THE HOME WHERE A LITTLE MONEY CAN GO A LONG WAY.
Garage doors can also add significantly to your home's curb appeal. Check with local vendors for pricing, but a new garage door for a two-car garage should cost less than $2000 to install. Granted, like everything else in life, there are many price points for garage doors. Make sure to pick the one that best suits your home and local market. You don't want to install a $1300 garage door on a $2M house.
Lastly, if your laundry facilities are in the garage, make sure that they are properly ventilated and the working space is very clean. All gaps (including at the bottom of the garage door) should be closed to prevent rodent and other small critter intrusion. Yes, many buyers are unusually sensitive to the last point; you would be surprised how many times this comes up.
CURB CLEANUP
curb appeal is real
Many buyers, or appraiser for that matter, have already made up their minds about your home before even walking through the door. Never underestimate the power of first impressions, especially as it relates to real estate. An investment into the exterior of your home can make a HUGE difference in the level of interest your home receives and, frankly, your relationship with your neighbors!
A LITTLE ELBOW GREASE AND A GREEN THUMB CAN MAKE A VERY BIG DIFFERENCE
Making sure the yard is in great condition and even planting a few plants on the exterior are great investments. This is something that you can do yourself over the weekend. If your lawn has seen better days, invest in some fertilizer and seeds. Planting small plants that highlight a home's exterior is also another great "DIY" project that can reap big rewards. Also consider power washing your driveway or walking path to the front door. Oil stains or other signs of common deferred maintenance can lead a buyer down a long spiral of "what ifs". A nice paint job on the entire house also helps but many folks don't have the resources to pay for that. A great alternative is to point the front door to a color that pops and makes the house stand out. Painting window trims are also another low-cost option that can lead to great results.
Lastly, if you have large trees in your driveway or around your home, it would be prudent to prune them! Daunting trees can overtake the presence of a home and create a sense of "liability." They can also lead to issues with roofs and foundations if they are too close to the home. Consider removal (if not too much of an undertaking) or, at minimum, trimming the trees to let your home shine!
HERE'S WHY
buyer psychology impacts what your home is worth
Though you may not be in the process of selling your home, one thing is constant in determining its value: the opinion of the buyer in your home's market. If it's for a refinance, a purchase, or just a general home appraisal, all things leak back to the buyer. A home's current MONETARY worth is determined by recent comparable transactions, which involve a seller and a BUYER! Ultimately, the BUYER determines what the home is worth.
RESOURCES
I've been doing real estate for over 20 years now, with many of my transactions representing buyers. After seeing hundreds of homes with dozens of buyers, I've gained an intimate understanding of what they are looking for and the concerns they have. Design trends and home layouts come and go. One thing that is constant is the psychology of the buyer and its impact on the sales process.
If you have any detailed questions regarding any planned home renovations and their potential impact on your home's value, please do not hesitate to reach out to me directly.
The only thing I love more than real estate is helping people!
BUYERS ARE WILLING TO
LOOK PAST A LOT OF THINGS
A BAD FOUNDATION IS NOT
ONE OF THEM
