Americans love to upgrade their homes - $130 billion in home remodels and upgrades in 2013 alone prove that. The average cost of renovation in 2014 was about $4,000 and the rewards in doing so are apparent, paying off in the long run with increased home values and higher resale prices. While market conditions can factor into both remodels and home sales, making an informed decision about the future of your home can help you plan for bumpy financial roads ahead and utilize your home's equity should you fall on hard times. Here are three things to think about before determining which path to take regarding your home:
Identify Areas of Strength and Weakness
No one is inside your home as much as you are, which can be both a good and a bad thing. While on one hand, you're constantly aware of the things that work for your family within your home and things you want to improve, but on the other, you'll never again have the first impression that a potential buyer experiences. That can leave you blind to some shortcomings and big warning signs that a buyer would recognize almost immediately.
Regardless of the age of some of your rooms or appliances, certain areas of your home are always more beneficial to upgrade above others. Kitchens, master bathrooms, and outdoor remodels are some of the biggest financial boosts to a home's final resale price, so even if your kitchen is only a few years old, remodeling once more to bring the room up to cutting-edge status will help when it's time to put it on the market.
Avoid Frivolous Upgrades
Nothing turns buyers away from a beautiful, high-value home faster than a higher price tag for luxuries they don't need. Avoiding exorbitant, lavish upgrades will help the house move faster than it would otherwise, so don't get distracted by the draw of "connected" homes, private spas, or basement bowling alleys. Focusing on the core aspects of your home and making it as comfortable and functional as possible will impress most buyers more than flashy, expensive upgrades.
That being said, if you're hoping for a much higher closing price, it may be worth investing in marble or granite features on your countertops or flooring to justify a higher asking price. While it will segment your potential buyers pool, it'll help attract the high-end segment, but that could also extend the time your home is on the market.
Monitor Local Trends and Market Conditions
As with any market, you'll need to closely follow and speak with industry professionals before you put your home on the market. Depending on your area, there may be better times of the year to place your home on the market and close the deal itself.
In addition, identifying area-specific home trends will help make your home more attractive in the short-term. Water features, natural elements, and sustainable aspects of your home will draw a higher sale price in progressive, rainy areas like Seattle, for instance. Capitalizing on what your friends and neighbors are doing and upgrading your home accordingly will garner a higher price tag than others.
Ready to consider your home remodel or new construction possibilities? Vertical Construction Group can help. With hundreds of beautiful projects under our belts, our team of experts can help you envision, plan, and execute a stunning home remodel or construction to add value and functionality to your home. Contact us today to discuss your plans!