When you are selling a home, two underlying unknowns are always present. How long it will take? Is one. The second is what will the final selling price be?
The answer to that second one at least partially depends on actions the person selling the home controls, since performing renovations and add-ons boosts a property’s salability. But which renovations add the most value? Even though considerable study has been given to the issue, for any given home it’s difficult to pin down which are most likely to have the greatest impact.
Even so, some general observations are widely accepted:
ITEM: Some kinds of renovations show a much higher return than others. Replacing a traditional entry door with a steel door, for instance, often generates about a 100% return on the investment. A sunroom addition, on the other hand, is likely to result in closer to a 50% return when the home is sold. The web site remodeling.com presents national averages tabulated each year.
ITEM: The old focus on “location, location, location” applies to improvements, too. Selling a home in different areas of the country can influence how much you can rely on the previous item. For instance, some reports say that a backup generator is one of the worst investments a seller can make if they hope to recoup the add-on cost. Yet in areas where dangerous storms have a history of knocking down the power grid for days on end, a well-integrated generator can prove to be a highly marketable add-on.
ITEM: Some repairs that are not undertaken constitute such red flags that, though minor, they can seriously retard a sale. A broken screen door is a good example of an easy-to-remedy detail that can have a disproportionate effect, drawing prospective buyers’ attention from an otherwise well-maintained property.
ITEM: Some other kinds of repairs are essential for a different reason. A homeowner selling a home might be tempted to decide that replacing the garage roof, for example, simply isn’t worth the expense. Although it could be true that the garage roofing might not be important to buyers, it could prove vital if it prevents the bank from lending on the property.
So, how can a seller know what to do? Luckily, the answer is simple. Your veteran REALTOR® will be able to offer expert advice based on current market experience—to advise you on which repairs or improvements are a good or necessary expense (and which can be tabled for now). If you are thinking of selling your home this fall, do call me to discuss a home improvement strategy that will help maximize your return!
Ann Motz Realtors