If a remodel of your home is on the agenda right now, stop and think what the next buyer of your property would value most.
It’s a great approach to ensuring the money spent on your home doesn’t go to waste.
Of course, unless you’re thinking of selling in the short term, it would be crazy not to consider the benefit of a remodelling project to your own lifestyle. But in the long run, your home is likely your biggest asset, and any investment needs to deliver payback.
Knowing where to improve your home is not always obvious. Buying trends change all the time, and what’s hot in one neighborhood may have no impact elsewhere.
As your local agent, I see what buyers are looking for every day of the week. So, I can guide you on where your money might be best spent. Here are six issues to consider:
- Avoid spending too much – This is called over-capitalization and it’s a common mistake. Homeowners will improve their homes and expect a sales price that their neighborhood can never deliver. If your plans for remodelling mean your home becomes just too expensive compared with others in the area, you’ve gone too far.
- Buyers decide the price – While you may set the price, ultimately it’s the buyer who decides what they’ll pay. Homes reach great prices because they meet buyer needs and tastes. Always consider this when planning your remodel.
- Fix problems first – Projects that generate the best return are usually those that fix an issue, such as a small living area, a tired bathroom or dated kitchen. You’ll be punished in any price negotiation if a buyer thinks they have to do the remodel. They bake their estimation of the cost, which is always on the high side, into their offers.
- Remodeling strategy works in good times – The best returns for homes with, say, a new bathroom or kitchen, is when the economy is humming. During flat periods or slumps, prices struggle and the dividend from home improvement falls. Usually, though, the cost of the work stays the same. That’s bad news for you.
- Remodel favorites – Some work has a good track record for giving homeowners a return on their investment. These include bigger decks, replacement of rotting windows and upgrades to bathrooms and kitchens. Again, nothing stays new forever, so consider selling in the short-term after this work is completed.
- Get great advice – As your local agent, you can ask me about buyer trends in our area and where you’re likely to get the biggest bang for your buck. I’ll be delighted to assist you.