Property Management Blog

Projects That Add Value: How to Raise Your Resale Price

System - Wednesday, August 8, 2018
Property Management Blog

For many, your house is your forever home. You plan to stay there forever, but what if the unforeseen happens? Perhaps you need to relocate for a job, downsize in retirement, make room for a new baby or aging parent with a larger home, or simply want a change of scenery. Ultimately, your house is an investment, and in order to get the best return on your investment, you might consider making a few home improvements.

 

Know What NOT to Do

A home improvement is an improvement, so how could it possibly be a bad idea? The purpose of a home improvement project is to increase your home’s value, but there are some projects that allot a small window of opportunity to recoup the costs when it comes time to sell. You might get enjoyment and great use out of the improvement, but a potential buyer might not be willing to factor the upgrade into the purchase price, and could in fact see it as a negative selling point. For example, a swimming pool is a great source of summer fun, but it can be expensive to maintain and dangerous for families with small children.

 

When you are deciding what areas to improve, make sure it is consistent, especially if you will be making a large investment. You can hire a professional to do a full remodel of your kitchen, but if your bathrooms still have vinyl flooring and the shag carpeting has a ‘60s vibe, it can take away from your improvement. Bottom line, if you plan to splurge on a remodel, make sure the rest of your home is brought up to the same level of quality for continuity purposes.

 

Get the Most Bang for Your Buck

When it comes to the best investment, the projects that offer the most resale value for your home are kitchen and bathroom remodels, outdoor improvements, and roofs/windows. Once you decide what area of the home to tackle first, you must decide whether to DIY or hire a professional. In the kitchen, you can easily make a large impact with low-cost upgrades such as a fresh coat of paint, new cabinetry hardware, or new curtains. If the kitchen is in need of some serious updating, bring in a pro for the labor-intensive technical work, and tackle the sprucing up yourself.

 

Aside from the kitchen, the bathroom is one of the most important rooms in your home. A new paint color and mirror paired with a good grout scrub can really transform your bathroom, and you can spend less than $1,000 for a new floor or countertop if you use inexpensive material such as vinyl or laminate. If you opt for a full remodel, the price tag could fall between $14,000 and $20,000 depending on if you gut it and start from scratch or make small improvements.

 

All this inside improvement is nice, but don’t forget about the exterior of your home. Homes in Austin, TX typically sell for about $373,000, and so it’s imperative to make a good first impression. Make your home inviting with a pop of color on the door via a quick paint job, and make sure the yard and landscape are maintained so as not to become an eyesore. When you are evaluating your exterior, don’t forget to look up. The roof is one of the most important parts of your home to have in tiptop shape, and buyers will agree. Bring in a professional to see if any shingle repairs need to be made, and inquire about the typical timeline for a new roof, which could cost you about $6,000 depending on the size, pitch, and material.

 

Keep in mind that these home improvement projects don’t have to be completed all at once, especially if you aren’t planning to sell in the near future. Start by going room by room and creating a list of potential upgrades and improvements. The timeline is up to you, but the resale value will definitely be worth it.


Article provided by Bret Engle from DIYGuys.net