Homeowners often ask our opinion about home improvements they are planning to make and if they will increase the value of their home. Before I consider any home improvements at my own home I like to step back and think about them at a higher level and here is the thought process I go through before I get in my car and head to Home Depot.
Will It Solve My Problem?
Especially before starting a large project I ask myself if it will solve my problem.
The best example of a mistake I have seen is a homeowner who was told by a different Realtor his house isn’t worth as much as another home because the master bedroom was upstairs. Based on this information the homeowner spent $90,000 to add a 2nd master bedroom downstairs. In the end the homeowner decided they still hated the floor plan and wanted to move. Unfortunately, the master bedroom addition wasn’t worth close to the money spent and because that renovation didn’t solve their problem, they lost money when they sold the house.
Will It Make A Buyer’s Eyes Light Up?
Seeing how over 3,000 buyers at open houses react to improvements I know people buy based on emotion and not logic. Spending money on items that buyers can see will bring you a better ROI than improvements that have to be explained. It’s a little like telling a joke. If you have to explain it it’s not funny.
Will An Appraiser Give Extra Value?
In most real estate transactions, you have to sell the value of any improvement to the buyer and also an appraiser hired by the mortgage company. The two areas of your home an appraiser is more likely to give you extra value are in your kitchen and master bath. An appraiser is not likely to add value for a new fence, back yard landscaping, etc.
Will The Repairs Cost You More Money After A Home Inspection?
This is very important if you are planning to sell your home. There are inspection items we know can be repaired much less expensively up front by a handyman compared to waiting until after your home has been inspected and the buyer requests a repair to be made by a licensed vendor. On the other hand there are many items we have found are not worth addressing up front because either we can negotiate for you not to make any repair or a credit that costs less than doing the actual work.
If you have a question about a home improvement project you are planning hopefully these tips can give you a better ROI by thinking about them at a higher level. Questions about your project? Send an email to eric@koparealestate.com .
Have a Question?
Contact Us Now!
Posted by Eric Peterson on
Leave A Comment