Improving Value as the Prime Selling Season Approaches
Believe it or not, the snow will eventually melt and the temperatures will rise indicating the onset of Spring and the beginning of the prime selling season for real estate. Improving the value of your home can be beneficial whether or not you plan to sell this year. Obviously if you plan to sell, increasing your home’s value can increase your position in the market thus attracting more buyers. But even if you don’t plan to sell, improving your home’s value(especially with curb appeal) can improve the selling prices of any of your neighbors’ homes that plan to sell this year, thus creating more demand for your neighborhood.
The most common determining factor for deciding which improvement to make on a property is return on investment, which can be illustrated as Cost vs. Value. Fortunately Remodeling Magazine has produced a piece, in cooperation with the National Association of REALTORS* and REALTOR* Magazine, titled The 2015 Remodeling Cost vs. Value Report that provides estimated costs for 36 home improvement projects, as well as a percentage of investment recouped when the property sells. The report clearly illustrates that large-scale projects aren’t likely to provide a high return on investment. That being said, some of the pricier projects that do provide a decent return on investment can provide the owner with a few years of enjoyment before the house hits the market.
The report provides some general rules to remodeling. For instance, simple/low cost projects tend to return a greater value. Front door replacement, and garage door replacement are two good examples of simple, relatively low-cost projects that return the most and third-most return on investment respectively. Another rule to take into consideration is the importance of first impressions. Door replacements can help in that area, but sellers should also consider replacing old siding, or adding manufactured stone accents to the front of their home. In terms of larger scale remodeling, however, kitchens still provide the best bang for the buck.
Top 4 projects nationally in terms of cost recouped:
1. Entry Door Replacement (101.8%)
2. Manufactured Stone Veneer (92.2%)
3. Garage Door Replacement (88.5%)
4. Siding replacement, fiber cement (84.3%)
Be careful, however, to not “over-improve” a home. Make sure the updates are typical for the neighborhood and that there is a high demand for that particular update. With home prices continuing to improve in the Miami Valley Region, it would pay dividends to contact Bruns Realty Group and Bruns General Contracting to get the perspective of our experts in the real estate industry and the home improvement industry all under one roof.