If you are thinking about selling your home or purchased a property as a quick investment, there are certain adjustments and upgrades that you can do to maximize the value and increase the interest of the home. According to experts, some improvements can have a significant impact on the sale price of a house or apartment. Furthermore, the upgrades can help lower the time needed to sell the asset. Potential buyers focus on certain areas of a home more than others; therefore, these zones should receive the greatest level of attention.
Bathrooms and Kitchen
Bathrooms and kitchens typically command higher attention to detail. In hot housing markets, such investments can more than double the return on investment. This makes sense too as these areas are expensive when remodeling. Generally, kitchens and bathrooms are representative of well-spent funds in a home. Since people spend a lot of time in these rooms, potential buyers will value those improvements. However, renovators need to pay special attention to detail and the materials. Currently, people seek traditional designs. Therefore, commercial-looking appliances, wood cabinets, and natural wood or stone floors will be the most attractive options. Investing in a highly rated flooring and tile company will produce good value. Buyers are also looking for walk-in showers to replace tubs; therefore, consider these new trends.
What property owners should invest in when remodeling depends on the value of the home. If the property value is low and the investment in the upgrades is high, the probability of recovering the investment will be slim. For example, say that the value of a home is $125,000. Investing in a bathroom or kitchen that costs $50,000 does not make sense as the value of the property will probably not increase by that amount. Therefore, individuals should limit the upgrade to no more than 25 percent of the value of the property in a kitchen project and up to 15 percent on a bathroom upgrade value of the property. With that being said, consideration must be given to appeal. If, for example, the home only has one bathroom, a better option is forgoing the upgrade and adding a second bathroom. The impact on the value of the home will be greater with a two-bathroom property compared to a single bathroom.
Windows, Siding, and Roofing
This combination is something that may initially go unnoticed. However, all three aspects can increase the energy efficiency of a home; therefore, each has the potential to add value. For example, siding upgrades provided by home improvement services companies can include foam backings which add durability and insulation, having an immediate effect on energy costs. Although a fresh coat of exterior paint will make the home stand out, investing in siding will improve the return on investment as the paint will not provide energy efficiency. Furthermore, the investment is one of the least expensive upgrades and has an instant impact on the visual appeal. Homeowners can make an older home look new for an average of $10,000. Remember, the first impression will always be the exterior.
The condition of the roof can impact a home’s value both negatively and positively. Cracks in shingles or properties with visible damage can scare potential buyers and reduce the appeal of the home. These types of repairs are expensive, thus making property seekers wary of investing in a location that may require a roof repair. However, a new roof will improve the exterior appearance and will generally come with a longer warranty that is appealing to new homeowners. Also, new roofing techniques use technologies with Energy Star ratings that are proven to keep homes cooler in the summer and warmer in the winter, thus reducing energy costs. In areas that are prone to hurricanes or severe weather, new roofs help ease buyer’s fears and provide assurance that the homes meet tougher building codes and can handle the weather. Look for companies specializing in roofing and construction services and have a professional rate the condition of the roof.
Basements and Pools
On average, a basement renovation can add a 79 percent return on investment. Therefore, having a basement is a great advantage, and homeowners can maximize the value of the added space. A well-finished basement can add an additional room to the home and this is appealing to potential buyers. Buyers can envision using the area as storage, a game room, a gym, or other uses. Some may even want to use the space to rent out. A basement with a bathroom adds even more value and can increase the total value of the property. If the area has damages, consider hiring an expert in basement foundation repair and avoid these problems from negatively affecting the sales price of the home.
Pools are another amenity that may increase the value of a home. Although many would think that this is automatic, the added value depends on several factors including comparable home prices in the neighborhood and the cost of construction of the pool. For concrete pools that cost upwards of $60,000 to install, such upgrades may not be worth the investment. However, newer alternatives such as fiberglass options are more cost-efficient and can help create a more attractive home selection for less than half the cost of the concrete option. Other factors including year-round warm weather and the type of neighborhood will also play a role. For example, in a higher-end neighborhood in Florida where most homes have pools, the investment may be worth it. Adding other amenities such as residential hot tubs and spas can make a difference that can provide sellers with an edge when buyers compare the home with other similar properties in the area.
The Other Details
Do not overlook smaller repairs and details. A fresh coat of interior and exterior paint, replacing faucets and shower heads, improving interior lighting, and adding flowers to the landscape can improve the appeal and help attract potential buyers. Additionally, if a seller has spent thousands of dollars on improvements and upgrades but ignores small repairs, those small details may deter a buyer from executing the purchase as they may signal deeper problems with the home. Therefore, it is important for property owners to focus on basic maintenance. Make sure that all home components are functional. Avoid driving prices down by failing to replace minor items.
Lighting can be one of those small details that can make a room feel open and inviting. These may not have a direct impact on the value of the home, but upgrading the lighting fixtures or making a room brighter can help sell the property in a shorter time. Sometimes lighting can be as simple as replacing bulbs with higher quality items that are not only energy efficient but brighten up a room. Natural light is also important. If the home has dark or heavy drapes, replace these with curtains that allow sunlight to enhance the room. Some of the details do not even involve investment. Instead, it is about cleaning and removing clutter. Cleaning can give buyers an indication that the home is well kept while removing clutter improves the spacing and a adds an open and spacious feeling.
