Home remodeling is a necessary improvement when it improves the quality of living. However, remodeling projects that are intended to increase the value of the home can be a whole different ball game. Indeed, some projects do improve the value of your property but others are just basically draining your wallet. Distinguishing which are the projects that will increase home value is discussed here.

Initial thoughts:

Your first consideration is the appraised value of the house. Knowing this figure will give you a comparison of value for any improvement that you may be considering. The line between improving the value of your home and potentially out-pricing it from competition is a very thin one.

In other words, if you put so much money into improvements for your home that yours has a significantly higher value than all the other homes in your neighborhood; you have out-priced your home for resale. It would be very difficult to sell your house at its full value if all the other houses in the vicinity are priced much lower.   

How would I know if I am already out-pricing my property?

According to home marketing experts, the rule of thumb is to never improve your home to a point where it’s value becomes twenty percent higher compared to other homes within your selling radius. Listing your home for sale at a price that is twenty percent higher than the rest of your competition is the highest you should go. The improvement that puts on the twenty percent needs to be significant.

In more practical terms, if twenty percent means $30,000 for your home value then putting in an improvement that is 40,000 will mean you potentially lose $10,000. value is  On the flip side of things, doing an improvement that costs only $10,000 but makes the appeal and appraisal value of the home worth another $30,000 you have potentially just make yourself a nice little profit.   

What else should be considered?

You have to understand that some improvements may be too personal. Case in point, a hot tub improvement may excite you and feel that it increases the value of your home, would a potential buyer however react the same way? Some expensive upgrades are merely personal preferences which sometimes doesn’t sit in well with the priorities of a would-be buyer hence you may only be facing the possibility of losing money over such improvement.   

Safe upgrades:

There are several very practical home improvement upgrades that will appeal to everyone. Any renovation done on the kitchen or bathroom or constructing a new room that can provide additional space in the house is quite safe. Landscaping would be a good and safe bet. Landscaping indirectly improves the property’s value by creating a very favorable first impression.

Needed equipments like a new furnace or necessary items like an electrical system are not really improvements but fall under the category of ‘must’. These are items that may have to be rectified on a new contract. Having updated fixtures, hot water heater, furnace, roofing repairs and more along these lines will draw a buyer to the home. If you want to add a carpet, choose one that is neutral so that it doesn’t offend anyone.

Just remember that it is always to your benefit if you consider and weigh all angles first before implementing any renovation or improvement project.

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