You can increase the value of your home by doing as little as simple landscaping and putting on a fresh coat of paint in the right color inside and outside.
There are ways to increase your home’s value for resale that range from the very expensive (major remodels and additions) to free (tidying up the front yard). We’ll look at the whole range, noting how much value is added when possible.
Before you begin any of these projects, it is
important that you do them with the following in mind: you do not want to raise
the value of your property too far above others in the neighborhood. Why?
Because people who want expensive homes will shop exclusively in higher-value
neighborhoods. If you own the “best house” in the neighborhood, it is unlikely you
will recoup whatever investment you’ve made. A good rule of thumb: keep the
value of your property within 15 to 20 percent of your neighbors’.
The following figures appeared in the November
2001 issue of Realtor Magazine. They list the top ten remodeling projects
undertaken to increase a home’s value in the United States and what percentage
of your remodeling investment is recouped at resale.
Project (average cost recouped, national):
Minor kitchen remodel (88%)
Bathroom remodel (85%)
Major kitchen remodel (81%)
Family room addition (80%)
Deck addition (77%)
Master suite (75%)
Attic bedroom (74%)
Siding replacement (73%)
Window replacement (69%)
Home office (55%)
These are national averages, so in your area,
the figures may be lower or higher. To explain, if you spend $10,000 on a minor
kitchen remodel, you will be adding $8,800 to the value of your house. Remember
that it’s a tricky business, trying to add value to your home. What seems to be
value to you may not appear that way to any given prospective buyer.
Projects that may increase your home’s value
include: Jacuzzi (4 jets or more); permanent hot tub; in-ground pool with nice
deck area; security system; sprinkler system; substantial out buildings such as
a two-car garage or finished workshop; and vaulted or trey ceilings. Think
twice about the following projects however, as they may not add value to your
house: above-ground pool; ceiling fans; garden pond; and light fixtures.
Some tips when attempting value-increasing
remodeling:
l Remodel with mass appeal in mind.
Potential buyers are usually attracted more to neutral, mainstream design.
l Don’t go cheap when it comes to
construction. Use durable, quality materials. If you’re a do-it-
yourselfer, honestly evaluate your ability to do it right.
yourselfer, honestly evaluate your ability to do it right.
l Don’t remodel in a different style from
the rest of the house. Additions and improvements that look “tacked on” may
detract from a home’s appeal.
l Turning a bedroom into a bathroom is a
mistake – it reduces the number of bedrooms, a chief selling point.
l Don’t do a $30,000 kitchen remodel in a
$100,000 house – unless you plan to continue living there. It is a waste of
money.
l If you don’t sell, there are
improvements that actually reduce your tax bill. Qualifying improvements are
those that increase your home's value or prolong your home's life, including: a
fence, driveway, a new room, addition, swimming pool, garage, porch or deck,
built-in appliances, insulation, new heating/cooling systems, a new roof,
landscaping, etc.
South Broward Homes For Sale By City Or Zip Code from Tony Ortega on Vimeo.
If you don’t have the kind of money it takes
for even minor remodeling, there are low-cost ways to increase your home’s
value. At the very least, the following things will make your home more
attractive and inviting to prospective buyers.
Make sure the outside of your home is
spic-and-span. Clean out the gutters. Wash the windows and remove cobwebs and
bugs. Trim the hedges, cut and edge the lawn, sweep the sidewalks and driveway.
Plant some colorful flowers out front. The reason for these small things is
simple: If two similar homes in the same are area are both for sale, the one
with the cleanest and most appealing front yard will sell first.
You may want to add to or improve your
landscaping while you’re at it. According to a study conducted by Money
Magazine, landscaping may be the best investment to improve a home's value. The
study found that well-planned, attractive landscaping was estimated to have an
actual recovery rate 100 to 200 percent higher than a kitchen or bathroom
renovation.
Friend Have a
Wonderful Day!
Antonio Ortega LLC Licensed Real Estate Professional
Global Luxury Realty, LLC
1688 Meridian Avenue #700
Miami Beach, Florida 33139
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