I recently got off the phone with someone who insisted on making home improvements with the goal of increasing their home value. While home improvements do help the value of your home, it is not always the case.
Now, don’t get me wrong, I love updating my home when I have the resource to do so! Making improvements is beneficial in keeping the home updated with your current taste in décor. Moreover, it also helps keep your home in good conditions to decrease the chances of any major repairs. I even made a post onFour leading home projects everyone is doing.
Now, how does it affect your home value when it comes to
making improvements to sell? Well, if you are not careful on what you choose to
do on your property, you may break-even or even worse, lose money.
Break even or lose money?
As a homeowner thinking of selling your home, your goal is
to maximize profit! I mean, who does not want to make the most out of their
sale? As a result, most homeowners believe their home needs to be top notch to
compete in the housing market. Therefore, they start doing home improvements to
make it the most presentable home possible.
Usually, what happens is that homeowners get carried away and
truly believe these improvements will make a huge impact on their home value.
The reality is, most times, it will not.
Depending on the updates and repairs, it may not be worth the work when it comes time to sell. In short, homeowners realize that the updates done did not deliver to their expectations and did not impact the buyers to pay more for it.
Why will home buyers not pay more for my home improvements?
Look, we all have great memories and a certain attachment to our homes. The improvements we make have always been with our family in mind. In the end, what we think of our own home is not what the buyers walking through will think. What they are thinking is not about the present, but of the future. They are thinking of how this home will fit their family needs and how to make it their own. Buyers will always want to change something or improve on something no matter how perfect we think our home is.
Therefore, the best way to approach this is by detaching
from the home. Looking at the home like it was a product. So, with that in mind,
do what is necessary to the property and not what you “feel” is the right updates
to do.
If you are unsure of what home improvements to make to
maximize the amount of money you make on your home when it’s time to sell, do
not hesitate to reach out and ask me. I am happy to assist you in making the
right decision!
