Thinking of remodeling or renovating? Be sure not to ‘improve’ your home outside of the neighborhood. It’s okay to do this if you want to keep living in it, but if you’re making improvements to sell your home for a higher value, watch out!
Real estate agents accept that there is a ceiling on real estate prices, no matter where you live. The catchphrase ‘location, location, location’ isn’t just for fun; each location has a ‘minimum price and a maximum price’. If you live in a prime location area, the sky is the limit, but sadly most of us are not!
If you live in a lower-priced area and put in a pool and outdoor kitchen before listing your home, you’re bound to attract buyers to your home. It will undoubtedly bring offers for your home and this is all good news.
However, while you will be able to sell for the highest price in the neighborhood, the sale price may not reflect the full cost of your improvements.
To avoid this error in judgment, ask an expert in the field of neighborhood pricing: your local real estate agent! He or she will be happy to come and advise you on what specific improvements can add value to your specific home in your specific neighborhood.
This is the kind of advice you want if you are improving solely to make money. Many home improvements have been ‘analyzed’ to see which ones give the best returns on your initial investment.
For example, in ‘Money Magazine’ they recommend adding a quality platform to increase the potential size of your property. It should not be larger than one third the size of your house.
A platform can be transformed into a luxury class quite cheaply – exterior lighting around the platform area, waterproof speakers and an entrance through French doors will help. If you use ‘cute’ outdoor lighting chains and decorate with potted trees, the terrace will have an attractive atmosphere.
A HomeGain.com report suggests that the outlay to upgrade a kitchen can add twice the initial cost of the upgrade to your home’s value. If you have a closet that you can turn into a pantry, go ahead!
The pantry is a sought after feature in a kitchen right now. Islands are another desired feature, though preferably with a secondary function, such as a sink or breakfast bar stools.
Once again, keep a ceiling on your prices. If your neighborhood is for the average family, it’s not worth investing thousands of dollars in top-of-the-line appliances if it will price your home out of the local market. The report suggests that appearance and novelty are the most important factors.
