5 Renovations You Should Avoid and 5 Renovations You Should Take On for Your Home!
By Emilio DiSpirito
The DiSpirito Team
emiliodiv@gmail.com
401-359-2338
www.MyDreamHomeNow.com
Regardless if you are preparing your home to sell or not, your home one day will be hitting the market. It's at that time you will remember reading this article and you'll either thank it or curse it!
Remodeling a home can be very exciting and costly in the initial approach, however, it will be most costly when you add any of the items from the "5 Lowest Return Renovations" list!
Here are the top 5 Lowest Return REnovations You can Do in a Home:
(According to http://www.remodeling.hw.net/cost-vs-value/2018/)
Backyard patio
Average cost $57,147
Average resale value $24,889
Return on Investment 43.7%
Master Suite Addition
Average cost $`130,432
Average resale value $67,947
Return on Investment 53.2%
Bathroom Addition
Average cost $47,715
Average resale value $26,990
Return on Investment 56.5%
Kitchen Remodel
Average cost $66,845
Average resale value $42,753
Return on Investment 64.3%
Bathroom Remodel
Average cost $20,640
Average resale value $14,588
Return on Investment 71%
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Overlooked and misunderstood, homeowners place their homes on the market unprepared for prospective buyers who are willing to pay top dollar.
The misconception comes in with sellers being so caught up with the hype of the current sellers market, where they feel as if they can just list and their home will sell as fast and high as their neighbors... Unfortunately, that is furthest from the case.
Before we dive into this, lets talk about the factors that go into home pricing:
Location
Condition
Market
Marketing
PREPARATION
Preparation truly being key. You see, according to Inman, 78% of homeowners invest roughly $5,000 on average across the country on preparing their home for sale. The costs include but are not limited to, painting, staging, moving, etc.
There are a few vital areas that 99% of sellers and agents don't think of. The following items will offer a strong return on investment, as well as satisfied buyers and banks. Follow these steps for a successful sale.
Aside from making sure to declutter and depersonalize, make sure that you thoroughly clean your property. Here are the major areas to cover!
Front entrance walkway. Are there cobwebs around the lights? Does the home need to be power washed? Overgrowth around the front of the home?
Floors! Is there dog hair or dust bunnies on your floor? In the corners of the floor? Stuck in-between hardwood surfaces? Make sure that your floors shine clean!
Bathrooms! Is there mold in the bathrooms? Odor? Are the fixtures shiny and clean? Make sure the bathroom smells fresh and sparkles!
A clean kitchen represents the overall health of a home. Are there grease marks and hand prints all over your cabinets? Did you forget to take out the trash? Dishes in the sink? Make sure your kitchen is clean and clear and ready for a buyer to fire up their imagination on what they can conjure up for their guests in your amazing kitchen!
Utility areas need to be cleared for easy home inspection as well as buyer access.
Can buyers get financing on your home? FHA, VA, Rhode Island Housing and USDA all require that the property be safe for an individual to move into! In brief, make sure to figure this out before you list. An experienced real estate agent and pre list home inspection from a reputable home inspector can assist with helping you identify what the property can not have:
Chipping and peeling paint on the exterior or interior.
Broken windows
Missing handrailings
Broken heating system
and many other items
Fix the red flags and disclose everything else! Buyers ask for $3 worth of concessions or repair credits for every actual $1 worth of repairs. When you price your home appropriately for the work that is left over after doing a pre list home inspection and disclose what needs to be done, buyers sign off on the disclsoures and accept the work needed when they place their initial offer.
We are finally in a recovering housing market! Less foreclosures & short sales mean less people loosing homes, home prices increasing because of higher home values throughout and a healthier America. Good news right!?
Now don't get me wrong, if you bought during a high market like 2005 or 2006, you will not be able to sell your home for that same price.. about 9.9 out of 10 times!! With that said, one of the most common questions I get as a Realtor is "What can I do to increase my homes value?".
Each home is different. Never ever add more to your home than your neighborhood/location can support. For example, if your home is in a neighborhood and town where the average price is $150,000 and the average home is 3 beds 1 bath 1000 sq ft., you may not want to buy or build a 5 bed 4 bath 4,000 sq. ft. home. Now that's kind of far fetched you may think (it happens), but I strongly suggest to ask a real estate professional before you spend $30,000 remodeling the kitchen and baths for example.
While there is no exact list that will fit every home, here are some of the top items I recommend if you are looking to increase your homes value.
1.) Curb Appeal! 1st impressions are everything!! If the garage door is banged up or outdated.. Replace it!! Almost always it's the largest feature on a home! Your neighbors or prospective buyers eyes will always wander to it!! $650 to $3000
2.) Efficiency and Look!!! Replacement windows! High Efficiency replacement windows are one of the best ways to save on that energy bill and furthermore old drafty windows are not only an eye sore but a deterrent to potential buyers!! Your home will take on a whole new look with new windows! $250 + installed
3.) Maintenance Free Vinyl Siding! I remember painting my childhood home with my family one summer... It was about 90 degrees out and in the heat of July. We bought all the paint and when we applied the "mauve" paint.. we soon realized it was PINK!. Yes because my mother did not (and still does not today!) believe in wasting.. we had a white home with bright, loud, obnoxious pink shutters... Needless to say it was no surprise when selling that many buyers were not interested. Vinyl siding comes in very desirable and neutral colors. It makes your home look updated and is maintenance free! Not to mention it provides a level of insulation on your home!
4.) Welcome!! Steel Entry Door!! One of the most overlooked and crucial focal points to a home is the steel entry door!! A beautiful entry door is not only appealing but you can easily adjust colors on a steel door should you ever decide to change your homes look! Cold and hot air can creep through wood or old doors. Steel doors also provide better security.
5.) Install, refurbish or replace that wood deck! New England has lovely seasons!! Take advantage of extra living space for more than half of the year!! Friends, family, neighbors and if your selling, buyers will love the idea of outdoor relaxation!! If you have an existing deck, you can either replace old rotted wood with new planks or trex. If the wood is in good shape you can always treat it with stain to bring back the rich look! Makes a HUGE difference and costs so little!
6.) Internal expansion!! Take advantage of that attic or basement!! You can easily refinish many attics and turn them into a guest bed or office!! Transform the basement into a getaway! You can use the space in your homes lower level for a rec room, man cave, family room or bedroom! Limitless opportunities and one of the best ways to increase your homes value!
7.) Kitchen and Bathroom!! Sometimes its as simple as painting the cabinets and changing the hardware!! Inexpensive and ascetically astounding results! If your appliances are old and on their way out, replace them. Stainless steel is the fad and will provide your home with that modern look! As far as bathroom.. do you have one of those old plastic fan-folding shower curtains? Those are hideous and a breading ground for failure! Take that out right now and unscrew the tracking.. throw it in the trash and head to the hardware store and pick up an easy to install spring loaded bar.. add a shower curtain and wa-la! For larger improvements, you will want to check with a real estate professional to ensure it makes sense for your pocket.
There it is! Feel free to watch this segment here from my show, The Round Table Radio - Real Estate Simplified!
We welcome any feedback or requests for information!
