How to Get the Most Out of Your Home Sale This Spring!
Remodeling Projects That Don't Make Financial Sense for Home Sellers.
If you plan on selling a home in the near future, you undoubtedly want to maximize your profit while minimizing your costs. Home sellers are bombarded with well-meaning advice on how to achieve the highest sale price possible, much of which is related to remodeling projects aimed at increasing the home’s value. While some remodeling projects do actually increase the value of your home, not all are cost effective. Home sellers who know which projects will pay off in the long run and which ones will not clearly have the upper hand when it comes time to put the home on the market. If selling a home is in your future, consider the following “Dos and Don’ts” of remodeling.
- Appliances—adding high end, user specific, appliances such as a wine cooler may seem like an elegant addition, but do not usually pay off in the end because you need a specific buyer to appreciate them. Instead, upgrade existing basic appliances if they are over five years old.
- Flooring—do not invest in expensive flooring such a travertine tiles or heated flooring because not all buyers are willing to pay for it. On the other hand, home sellers should replace stained or worn out carpeting or refinish dull hardwood floors so that the home is presentable.
- Paint—this is not the time to get creative. A fresh coat of paint is always a good idea; however, pick a neutral pallet and don’t break the bank using the most expensive paint available as there is a good chance a prospective homeowner will paint right over it.
- Additions—as a general rule, adding square feet to your home does not completely pay for itself at sale time. One exception to this general rule are if you are selling a home that is clearly short on bathrooms, adding an additional bathroom is likely to pay off. Another addition that frequently pays off and appeals to almost all buyers is outdoor space. A deck is often a fairly inexpensive addition that adds a considerable amount of usable space.
- Major remodeling – everyone wants a new kitchen or bathroom but completely remodeling your kitchen or bathroom will be both expensive and your taste may not appeal to all buyers. Instead, consider re-facing old, worn out cabinets or adding simple storage solutions inside existing cabinets and pantries.
- Energy efficiency – one remodeling project that home sellers can undertake that typically pays off and appeals to all buyers is anything that makes your home more energy efficient. Adding insulation, replacing an old water heater, or changing out old windows with new, energy efficient windows, for example, is something that almost all buyers will appreciate.
Because you have no way of knowing who will purchase your home, it is impossible to know what style choices will appeal to a future buyer. For this reason, major remodeling projects are usually not a good idea when selling a home. By sticking to some basic upgrades and universal choices you should be able to maximize your profit while minimizing your costs