Ready to launch a costly and expensive remodel before you put your house on the market? You may want to reconsider how much money you are going to invest into improving your home in order to get top dollar for your property. Many people mistakenly assume they will get back 100% or more on their remodel investments put into their homes but that simply is not the case.
"The 29 projects found on this year’s report paid back an average of 64.3 cents on the dollar in resale value. Looking at the 24 most tracked projects (projects consistently tracked for the last six years), their payback for 2017 was also 64.3 cents—only three-quarters of a penny higher than 2016 projections. Curb appeal projects like changes to doors, windows and siding garnered a higher ROI (return on investment) than work done inside the home. Replacement projects, like doors or windows, scored higher among real estate pros than did remodels." *
So before you decide to do a total major revamp on your home consider the following:
1. What have the comparable properties in your subdivision sold for? Take into account the square footage of the properties when comparing them to your home.
2. Did you purchase your home for a much lower price than it is currently worth? In other words if you purchased your home for $150,000 several years ago and comparable homes in your subdivision are selling for $300,000 it may be worth investing in updating your home as it is realistic to forecast a large return on your investment due to the appreciation of your home value since the time of purchase.
3. Remember not all homes need major revamping in order to garner the profit margin you are looking for. Sometimes it is best to adjust only the major eyesores and to find the most economical path to do so in order for you to not make the mistake of over investing in a property in which the market will not give you back a return on your investment. After all part of the renovations should ideally be for you as the homeowner to enjoy within your time of home ownership.
So before you spend your hard earned savings on a remodel be sure to tackle projects that will give you the highest return on your investment. Eye catching granite and quartz kitchen counters have become popular among home buyers but don't forget to peruse stores that sell demolition inventory that may have deep discounts or see if you can purchase remnant pieces from granite suppliers if your counter dimensions allows for it (the smaller your counter space the higher the likelihood that you will be able to find remnant granite pieces for it).
Staging and interior painting can go a long way in creating a lasting impression on buyers as well. Subdue overbearing colors with warm earthy tones and grays. You may love your magenta walls but buyers won't be able to look past jarring colors. So go ahead and declutter and invest in some pretty outdoor flowers, mulch and a door mat for your front entrance because as you know good first impressions make lasting impressions. Make sure there aren't any noxious pet odors or smoke odors in the home either, remember your goal is to please all the senses when preparing your home to be viewed. Scents should be subtle not overpowering. A lot of people are sensitive to chemicals so instead of having plug in air fresheners which can be too much try placing a scented candle on an electric candle warmer. The delicate and light fragrance will waft gently throughout your home invoking positive feelings from the prospective buyers without an assault of overpowering chemicals.
I have a large resource of stagers and handy men which I would enthusiastically help you with to get your home ready to market and sold. I love to help and see you succeed at getting your real estate goals met. Please feel free to contact me at 941-681-8062 so that I may be of assistance.
*Cost vs. Value: Which Home Improvements Offer the Highest ROI in 2017? Author, Nick Caruso.