Remodel vs. Sell
Originally uploaded by thenelsonproject
During my years selling real estate, I’ve seen many instances where homeowners made home improvements assuming they would recoup their investment when they sold, only to find to their dismay that the improvements added nothing to their home’s market value and, in fact, it may have even decreased it.
How could this be? Actually, there are many variables involved in how home improvements affect market value, so the question is more complex than it seems. Some of these variables relate to the general usability of the improvements, while others relate to an individual owner’s tastes and needs.
While remodeled kitchens and added bathrooms nearly always generate a good return, a new swimming pool that means so much to one owner does not often make a property more saleable generally, because it might not work for a family with small children. When you add square footage to a property it definitely raises the price of the home, however the cost per square foot to build may be more than the raised value resulting in a loss of money. Often a person will put a lot of money into their yard whether it’s a deck or landscaping which will make the property more attractive to a potential buyer, it has little to no affect on the market price. Decorating the interior of a home can be a challenge as well. The types and colors of the various pieces of a home such as flooring, paint, wall paper, cabinets and so on can be a major expense and add a great deal of appeal, but what is just right for one owner could be completely different to a potential buyers taste.
So when you are getting your house ready to sell, having a good relationship with a great realtor can have a big effect on your financial investment. The right realtor will gladly take the time to go over your home improvement plans and advise you on its impact on the value of your home. Then when you are ready to sell, two things have happened: 1.) you’re not going to be surprised what the investments on your home means to the market price and, 2.) you know your realtor will be able to do the best job of getting you the highest possible price in the shortest amount of time.
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