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These three factors may not boost your home's value!
Our team has dealt with this scenario time and again: during our first tour of a potential seller's home, the owners brag about their over-the-top improvements. Then it is our responsibility to let them know the upgrades have actually done little to boost the price (or may have dropped it)!
When it comes to renovations, you rarely get 100% back in your investments. So be sure you contact one of our brokers before you sink money into your home. You may end up using up most of the equity of your home! Here's how:
1. You're not improving the home for yourself.
Remodeling should be for your benefit, not for the next home owner. That's because you cannot guarantee the project will suit their needs! We recommend doing major projects with the intent of spending extra time or more years on your property. How much time? A good five years or more.
2. Major investments don't mean great returns.
It's all about comparing your home to others in the neighborhood. For example if you decide to invest thousands into master suite upgrades, this maybe a wonderful splurge for you. However if your home is still the same square footage as your neighbors, buyers may not care. If you really want to improve your home's value, research the neighborhood and see what buyers were willing to pay extra for. It may not even be a more upgraded kitchen!
3. Expensive improvements can scare buyers.
If the home has become the most expensive one on the block, buyers tend to shy away. That's because potential home owners are considering the future resale of the home. Depending on the market when it's their time to list, they may not be able to get as great of a return.
And of course if you need an expert's opinion, contact us for advice or a consultation!
Check out our blog for more tips or contact us for advice:
Windermere Metro Denver Real Estate
Source: http://rismedia.com/2014-12-03/six-cautions-about-over-improving-your-home/2/
