Which Renovations truly boost your home?

If you build it, they will come. But will they buy? Renovations can be the determining factor in a sale. Homeowners are spending more than ever on remodeling - a record $88 billion in the year ended September 1998, according to the Harvard University Joint Center for Housing Studies. But which renovations truly increase the market value of a home, versus those renovations that increase the comfort of a home's inhabitants?

According to the study, kitchens and bathrooms tend to top the list for remodeling. "Dollar for dollar, you get more return on your investment by updating these two living quarters. Of course, improvements vary based on the individual home. If something, such as a roof, is worn or in shabby condition, it may hurt a sale more so than a fabulous kitchen remodeling will help."

*Note that there are other improvements that might increase the marketability of a home, but won't necessarily increase its sale price. Two improvements many homeowners choose to add are upgraded landscaping and swimming pools. Both of these, however, won't necessarily add value and, in some cases, can deter potential buyers. For example, homeowners can pay between $2,000 - $15,000 for the same landscaping job, but a home buyer may not be able to tell the difference regarding the amount of money spent. Furthermore, that beautiful landscaping might be covered with snow if the house is put up for sale during the winter months or it might become frail and brittle-looking during a too dry summer. Homeowners who are looking to add an in-ground pool should view a pool as an investment in quality of life. The value of a pool is measured more in terms of the enjoyment of having one as opposed to measurement of a good return. While in some areas of the country, pools can limit the number of potential buyers, in warmer climates pools can often help attract offers.

In addition to large renovations, there are options for those seeking to make improvements for a quick sale. Interior and exterior painting can dramatically refresh a tired-looking house. New windows, siding and gutters can also help a house sell faster and add to its curb appeal.
If sellers are able to do one thing in terms of renovations, I would recommend, keeping it clean. "Get rid of overly decorated wallpaper and add a coat of neutral paint. It makes your home more appealing to a potential buyer."


The Best Remodeling Projects to Raise the Value of Your Home
If you are like most homeowners, you probably view your home as your most important investment. Diligent homeowners often treat their homes like stock portfolios or savings accounts and always try to add value to their properties. While there are many ways to increase the value of a home, one of the most utilized methods for homeowners is the remodeling project. However, despite the remodeling successes of many homeowners, remodeling a home is not always a guarantee of added value or increased interest from potential buyers. Hence, homeowners may want to take care in how they renovate their homes, especially when there is volatility in their local housing markets. With that in mind, there are few remodeling projects that are more likely to add value to a home and allow the homeowner to recoup the costs when selling.

Based on numerous studies of the real estate market, here are the best remodeling projects to increase the value of your home and generate the most interest from prospective buyers:

Kitchen – As one of the most used rooms in any home, upgrades made to the kitchen are always appealing to prospective buyers. Studies show, however, that the homeowners earn the most value when performing modest upgrades including new cabinets, countertops, floors and well-priced appliances. Hence, homeowners often don't need to worry about including luxury products when remodeling the kitchen.

Bathroom – In many cases, remodeling an existing bathroom can raise the value of the home as much as any other project. As bathrooms can typically be remodeled very affordably, this has long been a favorite project of homeowners looking to increase the value of their homes. Though the eventual recouped value seems to be contingent on region, most homeowners who remodeled existing bathrooms experienced better return on their investment than those that added new bathrooms to their homes.

Floors - Floors are considered to be the first thing buyers notice as soon as they enter the home. It sets the tone and over-all feel. Today, hardwood  and stone flooring have replaced carpeting, creating a more “open-concept” environment.

Windows – Though not as visible as remodeled kitchens or bathrooms, there are few remodeling projects that improve the overall quality of a home better than new windows. For instance, smart home buyers will recognize that new windows will not only make the home more comfortable and attractive, but will also save on heating and cooling costs.

Siding – Though new siding and other exterior improvements may not be possible or necessary for some homeowners, no other remodeling project generates a better response from prospective buyers. Nationwide, the value recouped by homeowners that installed new siding is matched only by successful kitchen remodeling projects.

On the other hand, there are also some remodeling projects that may not provide the best value for homeowners. Real estate experts typically point to expensive additions – such as home theatres, swimming pools and wine cellars – as the riskiest remodeling projects. The key to determining if such luxurious projects will add sufficient value to the home and allow the homeowner to recoup the value lies in assessing what is right for the neighborhood. For instance, a home with two bathrooms could gain significant value when a new bathroom is added if all the surrounding properties have three or more bathrooms. Likewise, if you reside in a region where swimming pools are an expected luxury – such as the desert southwest – prospective homebuyers probably won't see your addition as an unnecessary liability.
Most importantly, keep in mind that renovations and remodeling projects may not be as simple as they seem. It is wise to weigh the risks and to consider what is best for the local market before starting any project. If you are unsure what types of remodeling projects would add value in your neighborhood, you may want to consult a real estate agent to get a better understanding of what local buyers are looking for.

Making the Most of Curb Appeal
As more homebuyers and real estate agents use the internet to research properties, first impressions are more important than ever. Before scheduling appointments or visiting open houses, homebuyers and their agents will often drive by homes for sale and make assessments based on the exterior. More often than not, if a homebuyer doesn't like the outside of a home, they won't care to see the inside. Yet, it is possible to dramatically alter the appearance of your home with a few simple tasks. As you prepare to list your home, consider implementing some of the tips mentioned here to maximize your property's curb appeal.

Before you begin making repairs to the exterior of your home, you may want to analyze your home from a distance. Look at your home from across the street and try to pinpoint the best and worst qualities of the property. As you walk towards your home, try to make note of both your first impressions and any elements that stand out. When looking at your home from the exterior, you may also want to compare its appearance to other homes in the neighborhood. While you may feel as if you know the details of your home intimately, this step can help you think like a potential buyer and assist you in maximizing the curb appeal.

When it is time to get to work, you should approach the exterior of your home in the same way you would a bedroom or kitchen. Just as you wouldn't want a prospective home buyer to see dirty dishes in your sink, you want to make sure the front of your home is as attractive as possible. While the chores associated with maximizing curb appeal will differ from home to home, the following are the most common and effective methods of enticing potential buyers indoors for a closer look:

Paint – Perhaps the most effective of all pre-sale repairs, a simple coat of paint to the exterior, doors and shutters can make your home appear well cared for and in good condition. When painting the exterior of the home, you may also want to consider if new door knobs and other hardware could boost the appearance of your home. If you don't replace any of the metal on the exterior of your home, polishing brass hardware and cleaning or painting iron fences can also give your home a fresh look.

Lawn – There are a number of landscaping tricks that may improve the curb appeal of your home. First, the lawn should be mowed, raked and edged. Next, try to thoroughly weed all planter boxes, trim larger plants and include some extra flowers near the front of the house. If any large trees hang over your home or obscure the view from the street, you may want to cut away some large branches. You may also want to consider investing some extra money into landscaping by hiring professionals to make your front yard as attractive as possible.

Windows and Gutters – Much like the fresh paint applied to the exterior, taking time to clean the windows can certainly change the appearance of your home. Likewise, try to keep your rain gutters free of leaves and debris as you never know where a potential homebuyer might look.

Driveway – If you have an old, cracked driveway, hiring a professional to reseal the surface can add to your home's curb appeal. If the driveway rests in direct sight in front of the home, this step can become even more important.

Lighting – As potential homebuyers could drive by your property at any time, you want to make sure your home is inviting at night. By installing a street lamp and a front porch light – both of which should match the style of your home – you will dramatically boost your home's 24/7 curb appeal. If you anticipate potential homebuyers coming onto the property after dark, calm lighting that lines the driveway and path to the front door can put your visitors at ease.

Pressure Clean – This process can be applied to both the exterior of the home and the driveway. Just one treatment can eliminate years of dirt, mold and mildew from your property.
 
If you need to improve the curb appeal of your home before putting it up for sale, the best tool could be your ability to think like a buyer. By repairing or minimizing your property's flaws and drawing attention to key selling points, you may be surprised by the responses you receive from potential homebuyers.