Part of the fun and satisfaction of
owning a home comes from renovations – it’s your house, and you can make it
exactly like you want it. 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 house in the future. If you plan on selling in
the near future it’s important to understand what home improvements have some
of the lowest return on investment.
Before you dish out any money on a
renovation with an expectation that it will add value to your home, pause for a
moment and consider the long-term implications. You may be thinking to yourself
that the purpose behind 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.
There are many home owners who
incorrectly believe that every home improvement they make to their property
comes back to them in the form of increased value. This is not the case and in
fact there are things you can spend money on that not only don’t add value, but
can actually make your place more difficult to sell.
The homes in the surrounding area have a
lot to do with the market value of your property. This remains true no matter
how much you invest in your house. It is understandable that you want to make
your home as nice as you can, but you risk possible resale problems when you
upgrade too extravagantly. You may still be able to sell the house, but you may
not get your money back if the renovations are too far beyond the standard for
your area.
Do it yourself projects can be fun and
rewarding, but they can also affect the value of your home negatively. Crooked
tiles in the bathroom and unreliable wiring in the finished basement are not
selling points, even if they were learning experiences for you. Most of the
time it pays to bring in a professional to do your renovations. This way the
additions you make to your home will actually add value.
Don’t think this matters and nobody will
notice? This is one of the first things a good home inspector will look for.
Most home inspectors will immediately be able to distinguish do it yourself
work from that of a professional. It is an obvious mistake to make home
improvements you are not qualified to do.
There are classic choices and there are
trendy choices. For people interested in selling their homes, classic is
usually the safer bet – at least if you want to get back the money you spent on
the improvements. Avoid the styles of the moment if you want to add lasting
value to your home.
Choose a neutral paint color. It is your
home and you can paint it whatever color you like. However, to get the best
price on your home you should have a fallback paint plan before you put it up
on the market. Lighter, more neutral colors – think off white – are much more
appealing to potential buyers than anything else out there.
Your child’s room may be bright purple
and your game room may be lime green, but you should be ready to change them
back before you begin the sale process. If you can’t stand the thought of any
kind of off white then choose colors that are “earth tones.” A large percentage
of buyers are attracted to shades of brown. Use these colors to spruce up your
home and you will be happy with the results they bring.
If you have the attitude that it is just
paint and any buyer can just look past my colors then you don’t understand the
psychology of selling. Buyers can not visualize and can not look past a weird
paint color. For those that can they just don’t understand how this could stop
a sale, it can, and it does.
Carrie Colby
Broker/Owner
Premier Properties
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