How to See a Return on Your Investment
It’s a common belief that the more you put into your home, the more you’re going to get out of it when it comes time to sell. While this should be true, sadly that isn’t always the case. If you’re thinking about renovations or improvements plan carefully to make sure you see a return on your investment.
A pool may seem like an obvious improvement to your property’s value. Families with young children may see that pool as a safety hazard for their kids. Frequently they will pass on homes with pools to save money and would prefer to pay for an upgrade that would benefit their family. This could result in fewer offers on your home when it comes time to sell. This is not to say that a home with a pool isn’t going to yield a bigger return (they usually do). However, it is worth considering before renovating for the sake of adding value.
The fact is the value of your home is determined by the market and what a buyer is willing to pay for it. If the buyers don’t see the value in the upgrade you just spent a lot of money on, they will not want to pay for it. You could buy a new appliance, only to discover that another brand or style would be more desirable when your house hits the market. There’s no rule that says that 50 percent of what you spend on the renovation or upgrade will be added to the value of your home.
If you are not looking to sell soon and want to renovate, be sure you are doing it for your enjoyment and not for the added value that you may or may not get. If you are selling soon, contact an expert on what will make the biggest impact on the value of your home. You may find it’s better to update the electric or kitchen instead. You have to look at comparable homes in your area with such upgrades and what they are selling for to know for sure. Then you have to consider when you are selling and if the market will still be the same.
Helen Oliveri is a 12-year real estate professional that loves our community and helping clients achieve their real estate goals is her priority. She is the managing broker of the newly opened Keller Williams Realty Partners, home of The Helen Oliveri Team in Hawthorn Woods, where she also resides. Feel free to visit the new office in Cherry Hill Plaza at 101 W. Gilmer Road or online at HelenOliveri.com.