Homeowners who are ready to move
sometimes think that they need to make some quick improvements to either add
value to the home or increase the likelihood that it will sell quickly.
Although it may add perceived value to
the current homeowner, prospective buyers are not likely to be impressed with
the new renovations and sure aren't going to pay for your sweat equity and
monetary investment.
Here are some projects that you think
add value to your home, but don't.
Adding
a pool
Swimming pools are expensive to build
and maintain, will add to your insurance premiums and can be a deterrent to
families with young children. Sometimes, the buyer will write in a contingency
that the pool be filled in or dismantled.
Overbuilding
for the neighborhood
Some improvements and additions will
not add value if it causes the home to stand out as "too good for the
neighborhood." If the average home in the area is $150,000, potential
buyers aren't likely to pay $225,000 for yours if you've added a major
addition. The house will seem overpriced even if it is more desirable than the
surrounding homes.
Speaking
of a new addition
If you need an addition to improve
your life in the home, then go ahead with the project. If you're only doing it
to increase the value at the time of the sale, you'll never recoup the
investment. Buyers are unlikely to increase their offer to cover the amount
that you paid for the major renovation.
High-end
upgrades
Remodeling the kitchen and bathrooms
will add to the value of your home and the expense and effort of doing so are
worth the investment. However, many prosepective home sellers make the mistake
of overdoing it by installing new stainless steel appliances, imported ceramic
tiles, or state-of-the-art electronics in the media room.
New
carpeting
Removing the carpet and restoring wood
floors to like new condition is usually a more profitable investment than
putting in wall-to-wall carpeting. It may clash with the new owners' tastes and
furniture. It's expensive and you're unlikely to recover your investment.
Green
improvements
While making your home more
environmentally friendly is a good thing, prospective buyers will not care that
you've made the improvements unless they find eco-friendly homes as important
as you do. You're better off sinking any investments on green renovations into
your new home.
Invisible
improvements
Invisible improvements are usually
costly and usually expected to be up to snuff by any new owner. (Think plumbing,
HVAC.) A buyer is unlikely to pay extra just because you did this type of
project.
Upscale
landscaping
A lush, green lawn with nice
landscaping is one thing; shaped bushes and ornate trellises are another. It's
best to keep it simple with native plants, adding a little color so the new
homeowners can see how good the yard can be by adding plants and bushes that
fit their tastes.
A common mistake made by homeowners is
tearing up the front lawn to make room for another automobile. Not only is it
expensive, it actually detracts from your home's aesthetic.
If you're considering a renovation and
plan to stay for several years to enjoy it, that's one thing. Making home
improvements to increase the likelihood that it will increase the value of your
home is another. You're unlikely to recoup your investment and could actually
hurt your home's value to a prospective buyer.
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