- December 13, 2018
- Posted by: Editor
- Category: Investment
Do you know there are improvements that you make to your home that can actually lower the value?
The fun and satisfaction of owning a home comes from renovations.
It’s your house, and you can make it exactly as you want it to look like. Unfortunately, some homeowners get caught up in renovating their homes and fail to take into account what those changes will do to the resale value of the property.
You have every right to turn your house into an ideal dwelling for yourself, but you should keep a few things in mind if you ever plan on selling the home in the future.
If you intend on selling shortly, understand it’s important to understand what home improvements have some of the lowest return on investment.
Before dishing out any money on a renovation with expectations that it will add value to your home, be sure to consider the long-term implications. If your repairs fall into any of the following areas you may wind up spending more than you will ever get back when you sell.
You may be thinking to yourself that the purpose of making these changes to your home has nothing to do with re-sale value and everything to do with personal enjoyment.
While that, of course, is perfectly acceptable (after all it’s your home), just don’t forget this when it comes time to sell your place.
Many homeowners incorrectly believe that every home improvement they make to their property comes back to them in the form of increased value.
This is not true, and in fact, there are things you can spend money on that not only don’t add value but can make your place harder to sell.
So while your intentions of making home improvements have nothing to do with resale value don’t forget this when it comes time to sell your home.
When buyers look at a home, they usually consider the whole package. This is why consistency in your renovations is crucial because they may not be willing to pay more for an over-the-top addition to your home. Some homeowners get caught up in the idea of adding the perfect kitchen or bathroom and fail to see that the rest of their home only looks worse because of it.
I’m not saying that you should avoid improving on your kitchen – just keep in mind that dumping your entire improvement fund into a single area could cause an imbalance, something buyers are not willing to pay for. Spreading out the improvements might yield more rewards when trying to sell.
The perfect example is the homeowner who installs a new kitchen complete with gorgeous cabinetry, granite counters, and stainless appliances but leaves the linoleum floor that was installed twenty years ago.
It stands out like a sore thumb and negates much of what you have done to improve your home. The same could be said if your adjoining dining room has shag carpet or worn looking hardwood floors.
Remember to make the investments in your home consistent. Not being consistent could lead to a decrease in your home’s value!
Do contact us for more advice on possible ways to improve your house to increase its value.
“Remember, if it doesn’t portray excellence, it’s not Bricks & Tierra!”