What Home Improvements Add Value?
With the economy improving, home buyers are on the move. Last week we received several calls about home improvement projects to boost a home’s value for resale. “Should we remodel to make our home more appealing to potential buyers” was the most often asked question. How to spend those bucks to make the greatest impact on a home’s value is the bazillion dollar question.
In talking with Peter and John Benson of Evergreen Homes, they say “many home-remodeling projects are a great way to add value to a home, but not all improvements are sheathed for value added guarantees.” Malcolm Barrett Jr. of Lindquist Realtors said that “solid surface countertops such as granite and quartz, new cabinets, new fixtures, new flooring are great upgrades and these items absolutely help sell a property quicker and for more money,” but as far as the bang for the buck nothing helps sell as home faster than new fresh paint and flooring and a home that is clean clean clean, decluttered decluttered decluttered and well staged.
Before you spend the bucks you should do some homework on what type of payback you can expect for various home improvement projects. In talking with our local Prescott Area Association of Realtors, they said that buyers want assurance that major components of the home are in prime working order such as HVAC units, water filtration devices, hot water heaters, solar systems, etc. These items may not add beauty to a home, but they sure do add piece of mind so be sure to tackle these items that can affect a home’s structure or mechanical performance first before you install that new Jacuzzi tub in the bath. Adding an additional bathroom or remodel is on the list of top items to help sell a home. The kitchen was always the buyer’s focal point, however that has changed recently and a bath remodel can add significant value to a home. If you cannot afford a remodel, a face lift with new paint, fixtures, new flooring will go a long way. Bath remodels can recoup in excess of 50% of the cost.
“Kitchen improvements will certainly add value” said Kristy Board of Board By Board Builders. Painting should be the first consideration followed by flooring, cabinets, and upgrade in fixtures, sink, adding knobs, glass doors and lighting.
Curb appeal is another value option, especially if you are adding a patio and outdoor living area. Curb appeal is what calls potential buyers to your home and a clean well maintained yard with fresh plants, flowering beds can add value. Adding a nice deck to the patio can certainly recoup in excess of75%
The savings on utility bills and the high cost of energy is an item to consider when remodeling with energy-efficient improvements and these improvements will add value to the resale of your home. New insulation, windows, solar, all of these items can recoup at least 60% of their cost.
Remember, just because you spend $20,000 does not mean that your home is worth $20,000 more
It is also important to remember that the longer you hold on to your home after your have remodeled, the value of the improvements will diminish. This is due in part to designs changing, newer improvements and products coming into the market place. Can you remember the excitement over avocado green appliances, turquoise toilets and shag carpet?
Basic improvements may not be exciting and may not add beauty, but remember if your roof is leaking you have an issue.