How To Make A Return On Your Home Investment
If you have decided to put your home on the market, you’re probably wondering if you should do some remodeling, upgrading or just fix those broken items. Houses that have not been maintained properly through the years or do not have “trending” updates that buyers are seeking, today, your home may require some serious attention.
But, how do you know what improvements you can make and get a return on your investment? You may decide the best solution is to sell your home, “As Is.”
A smart seller will weigh the cost of improvements against the home’s market value after repairs or upgrades are made. If you are spending more [include the value of your time] then the return on your investment, it may not be worthwhile.
Before making your final decision, check out the competition in your neighborhood. Attend some “open houses” in your area to see what condition and amenities are in the homes. You may discover that you can make a few simple upgrades and be in-line with the market value of homes in your area or you may find your home is downright hopeless.
Doing a complete remodel of your bathroom, master bedroom and kitchen including all new appliances, will increase the value of your home, but the return on investment will not be greater than the money you have put into your home improvements.
8 Inexpensive Improvements That Will Increase Your Home Value
- Paint. This is the quickest and easiest way to make a room look fresh and new. Stick with neutral colors; Gray tones are currently popular and will appeal to the majority or buyers. Freshly painted rooms have one of the highest returns on investment.
- Bathroom Vanity. Updating your vanity is cheap and easy and will freshen up your bathroom. Pedestal sinks are very popular in 2017.
- Granite. Granite countertops continue to be a favorite for many homebuyers. But adding granite won’t necessarily have the same return on investment in every home. You wouldn’t necessarily want to install granite countertops in a $50,000 house.
- Add a backsplash to your kitchen. You can update your kitchen inexpensively by adding a backsplash.
- Functioning fireplace. If you have one, don’t get rid of it. A fireplace of some kind is a positive for your home value.
- Smart doorbell. When it comes to adding smart home features, a doorbell equipped with a camera that allows you to see and speak with people at the door is a relatively inexpensive. Besides, you will probably end up replacing the doorbell anyway because it doesn’t work anymore
- Cabinets. New-looking kitchens cabinets are attractive to buyers; But, this doesn’t mean you need to go out and buy all new cabinets. Cabinets that are in good shape can be resurfaced, painted or stained to look like new.
- Clean. Cleaning will not increase your home’s value, but it may very well decrease the value. Buyers expect a house to be clean and neat when they walk in. A dirty house says that you have not maintained your home.
It’s time to decide. Determine the total cost of your home improvements. If that cost is greater than the return on your investment, it may not be worthwhile to go through the renovation process.When a house is in such a state despair that only a house flipper would look at it, it may be time to sell your home “as is.”