Dos And Don’ts For Increasing Resale Value
MySpendingPlan.com Editorial Staff
There is no doubt
that home improvements can increase the resale value of your home.
However, you should know that not all types of home improvement projects
will add to the value of your home – lots of research has been done on
this. Here we discuss which home improvements generally increase resale
value and what type of home remodeling does not recover its money back
after a sale.
thing that home owners need to do to increase the resale value of
their homes is to beautify the façade/outside of their homes. Home
improvements such as landscaping your front lawn, adding some plants
and shrubs in your yard, and cleaning up the exterior of your home
do not cost a lot of money but can make a huge difference to the way
your home is perceived by buyers. After all, first impressions are
everything, aren’t they?
fresh coat of paint to the interior and exterior of your home can
increase its value considerably.
rooms of a home that buyers pay close attention to are the bathrooms
and the kitchen. These areas demand the bulk of your home
improvement budget. Adding a new full bathroom to your home (but
not if you’re going to end up a bedroom short!), or adding new
appliances to the kitchen can add to the resale value of your home.
A garage can
add considerably to a home’s value.
If your home
does not have a fireplace, think of putting in at least one.
laundry room up from the basement also adds to the resale value.
- New windows
do not add much to the resale value of your home, regardless of how
good they look or how energy efficient they make your home. Don’t
spend money on window remodeling unless they are literally falling
apart or busted up. Clean them up and make sure they are well-oiled
pools may be the ultimate luxury but if you’re thinking of adding
one to increase the resale value of your home, don’t bother.
- Central air
conditioning is also very comfortable, but this home improvement
does not recover its value.
- Laying new
floors such as marble, wooden floors etc is another home remodeling
project that will not get you more money on a sale.
such as a tennis court will make your home more high end but will
not increase its value more than what you spend on the remodeling.
money on cosmetic changes inside the home is fine up to a point, but
if you expect to recover the all money that you spent on those
antique decorative pieces, Taj Mahal like décor, and fancy branded
appliances, then you are wrong.
The main rule to
remember when undertaking home improvements to increase the resale value
of your home is that the expected value of your home should never go up
more than 15% to 20% higher than the value of the other homes in your
area, otherwise buyers start looking at the cheaper options.
Decide To Remodel, Do It Right
When starting on
any home improvement project, make sure you look around to find the best
home improvement contractor. Ask for references, ensure that the
contractor has all the necessary permits and licenses, and that s/he is a
qualified contractor. Request bids from at least 3-4 different
home improvement contractors and then choose the best one. Sites
like Angie's List and ServiceMagic can help you here. Make sure
you have a written contract that clearly specifies the agreed upon price
for the home improvements, the exact nature and scope of the home
remodeling, the time in which they will be completed, and what happens
in case of delays, etc. Also, insist on checking their relevant
licenses and for adequate insurance coverage (workmen’s compensation and
general liability insurance).
properly and done right, home improvements can indeed add to the resale
value of your home.