Sellers are looking to get the maximum amount for their home, and some have an inflated idea of what to expect when finding the value of their home. Do home renovations truly give you a big return on the investment? Take a look at these important factors that impact your home’s value.
Location: Place Is Everything
You know what they say – “location, location, location!” Location includes factors such as the price of nearby homes, the quality of the school district and the sense of community. Many people seek out communities with walkable amenities. For millennials, it is important for them to be in the center of the action and within walking distance of the places they need to get to.
Layout and Size
Homebuyers used to compete for homes with ample square footage, but many have fallen out of love with large homes. With larger homes come more housework and more maintenance to keep up the home’s grand appearance. Layout is a big factor because even if you don’t have a 3,300-square-foot home, an open concept can make your 2,000-square-foot home look just as spacious.
The number of bedrooms is also a big influence on a home’s value, so think hard before you put up a wall to separate one room into two. Fewer but larger bedrooms increase the value of homes.
Age and Condition
Older, historic homes and new, modern homes are traditionally more valuable than homes built in the middle of that timeline. As homes get older, they generally lose value, but there is also that point where homes become so aged that they have historical value. Along with the age of the home, the condition of the home also matters. Buyers are more willing to pay $20,000 more for a home that is in excellent condition than they are for a house that needs $5,000 worth of work.
Putting in the Right Upgrades
Renovations can positively affect your home’s value – especially in areas like the kitchen and bathrooms. Although, if your home is over-the-top improved compared with other homes in the neighborhood, it can actually hurt your property’s value. Hire an appraiser to prepare a feasibility analysis to help you determine the impact renovations will have on your home’s value.
Unless you live in an upscale neighborhood where built-in wine cellars and chef’s kitchens are considered normal, you may want to save the money on expensive finishes and go for the more basic options. You should also be sure to keep a record of the repairs and upgrades to show potential buyers that the home has been well-maintained and taken care of.