How to Decide on Upgrades to Make Before You Sell Your House
Making decisions about improvements to your home is pretty
simple if those improvements are meant to improve the quality of
life for yourself and your family. You simply invest your money
in those things that will mean the most to you. However,
deciding which home improvements will be most appealing to
potential buyers is another matters altogether.
Making the most of the money you put into fixing up your home is
very important. Choosing your upgrades wisely, based on market
research of which improvements pay for themselves, will help you
get the most out of your home when you sell.
Determining which upgrades and improvements will enhance the
value of your home and pay for themselves is often difficult.
For one thing, it requires you to place yourself in a buyer's
shoes, and see the home the way an outsider would. This is often
difficult, particularly if you are emotionally invested in the
home. It is tough to look on your own home as an outsider.
Therefore, it is a good idea to seek the advice of someone who
can be impartial and provide that all important outsider
perspective of home improvements and upgrades. A good place to
start is with your real estate agent. Ask your agent which
improvements or upgrades he or she feels would add the greatest
value. It is important to focus on those improvements that will
more than pay for themselves through enhanced home value.
You may also want to look at similar homes in your area. Pay
careful attention to the amenities offered in similarly priced
homes, and make your upgrade list accordingly. Naturally, it is
important to take cost into consideration when making those
upgrade plans, and make sure you can recover the cost when you
sell your home.
While it is important to study your own area to determine the
best improvements to increase value, there are a number of home
improvements that are known to pay handsome dividends when it
comes to increasing home values. These tried and true repairs
include:
* Adding an additional bathroom is also a great way to improve
the value of a home. This is particularly true if the existing
home has only one bathroom. Many potential buyers will not
consider a home with only a single bathroom.
* Remodeling the kitchen and/or bathroom has been shown in many
surveys to increase the value of a home and provide an excellent
return on investment.
* A new floor can also be a good, cost effective upgrade to a
home. This is particularly true if you are able to install the
flooring yourself, since a large portion of the cost of
installing a hardwood or parquet floor is the labor needed to
install it. Those who are able to install a new floor on their
own can often capture more than the cost of the flooring in
increased home value.
* Basic home repairs like fixing old gutters certainly add some
curb appeal, but they generally do little to truly enhance the
resale value of the home.
* Painting is one exception to this rule. A fresh coat of paint
in the areas that need is an excellent, low cost way to improve
the appeal of the home. A fresh paint job costs only a little
bit of money, but it can greatly improve the appeal of any home.
* A swimming pool is generally a lousy home improvement in terms
of adding value. Homeowners rarely recover the installation
costs of a pool when they sell their home, and in some cases a
pool can actually turn buyers away.
When making upgrades or improvements to your home, it is crucial
to keep good records which detail all money being spent. This
will be a big help when computing the capital gain on the sale
of the home, and when calculating the return on investment of
each upgrade or improvement.
Being able to do your own home repairs, improvements and
upgrades obviously will increase the return on investment of any
project. The less you have to pay carpenters, carpet installers
and other professionals, the greater your return will be. Some
home improvement projects, however, require the use of a
qualified professional. Unless you are an expert, improvements
or upgrades involving plumbing, electrical wiring, heating or
air conditioning systems should be left to the professionals.
Other home improvement projects, such as laying down a new
hardwood or laminate floor, may well be within the skills of the
average homeowner. Many home improvement warehouses hold
seminars where homeowners can learn how to do these projects. If
you can find such a free seminar, by all means take advantage of
it. It will save you money on home upgrades and give you
valuable skills for the future.