The most important question a Home Owner has is how to maximize what their Home is worth. Whether renovating or just doing some updates, the biggest question is “how do I improve without over improving?” No one wants to upgrade more than the home is worth and not get your renovation dollars back when you sell.
The rule is simple, if you have the nicest home on the block by a long shot, pride of ownership is evident but you run the risk not getting your money back when you sell. This is pricing yourself out of the market!
Every neighborhood has a glass ceiling in terms of top realistic expectant price. This is based on comparable properties that have recently sold in the immediate area in the last 6-9 months. Once you invest more in your home renovations and get above this top price, buyers have the option of looking in more expensive price ranges, which usually comes with a little bigger home in a more expensive neighborhood. So they could spend top dollar for your home, or they have the option of looking at larger homes in a nicer neighborhood for the same price range. Unless they have a specific reason to buy in your neighborhood, chances are they will look at what else they can buy for the same budget. Keep in mind, your home is already at the top of its price range, so an increase in home equity will happen much more slowly with your home than another home, which also becomes a consideration. Another consideration is some very affordable new builds. If they can purchase a new home with warranty or an older home where big ticket items will need replacing sooner, this becomes a factor in their decisions.
The key is to improve your home to the upper end of the price range without over improving! This is where it is very important to know what comparable homes in your neighborhood are selling for and what updates they have had. Typical updates can include anything from a new kitchen, updated bathroom, updated and fully finished basement, new flooring, open floor plan, etc. Comparing the homes in your neighborhood that have recently sold and analyzing their updates, allows us to determine how much to do and what not to do. Keep in mind, if you are happy in your home and have no intention of moving any time soon, spending more on your renovations makes sense. Even if you “over improve”, you are doing so for your enjoyment. Chances are over the next 10 – 20 years neighboring homes will catch up with yours and you will be in the top end of the market. But if you need to sell soon after completing renovations, know that you may run the risk of not getting all your renovation dollars back if you over improve. This is a decision each home owner has to make based on their individual circumstances. I just prefer that my clients make well informed decisions!!
Renovations and updates are one very important part of preparing your home for sale. However, the final presentation of your home is equally important! You have to think of the targeted buyer. Who will be buying your home and what do they want to see? What will make them fall in love with your home above all others? Well decorated spacious rooms are very appealing. A room that is well put together will be memorable and appealing to buyers. A room that may have too much furniture or things just not looking right will leave the buyer with a sense of unease. When they think of your home, this feeling of unease will return, and knowing something wasn’t right, they’ll move on to the next home. Staging ensures buyers remember your home and it is on the top of their short list of homes when it’s time to write an offer!
Learn the basics of staging your home for sale or if you want to learn how to determine what to spend on renovations, in order to maximize your home equity but don’t leave money in your home when you sell, come visit us at the Home Expressions Show April 4-6th. We will be hosting stage presentations Friday April 4th at 6:00pm; Saturday April 5th at 3:00pm and Sunday April 6th at 1:00pm.