Home improvement projects can improve the look and value of your home dramatically, but in some cases using a home improvement project as a way to increase the value of your home can actually backfire and cost you money. So how will you be able to tell if the project that you have planned will add or decrease the value of your home?
The first thing that you need to know is the appraised value of your home. You must know the appraisal value of your home before you can determine if a project will increase or decrease the value of your home. Although you may feel that your home is worth a certain amount of money, and that a home improvement will increase the value by X amount of dollars, your feelings will not set the final selling price, the market will. Call us to book your free appraisal on 021 528 318.
If you can make a home improvement that costs very little, but results in a higher resale value, it may be a good idea to pursue that project. For example, if you can spend $5,000 on a project that results in your home being appraised at $115,000 more than the appraisal before the improvements, then it is a great investment idea.
You also want to consider the appeal that your home improvement project would have to a future owner. For example, swimming pools and spas may be something that you enjoy, but would a potential buyer pay extra for those features? There are some fairly safe projects that you can pursue that other home buyers generally find valuable, including kitchen remodelling, adding or remodelling a bathroom, adding a new room or landscaping.
Also keep in mind that maintenance projects do not usually result in an increased value for your home. Replacing a broken furnace or hot water heater usually will not improve the value of your home when selling it. These are considered maintenance issues that all homeowners expect the home to have working. Most people would not consider paying full price for a home that does not have these basic features in working order.
The bottom line is that if you are interested in increasing the resale value of your home you need to make smart decisions. Smart decisions on which home improvement projects to tackle can put extra money in your pocket when you sell your house.