Planning For Future Value
A major home project, such as a kitchen or bathroom renovation, is almost always a source of stress for those planning to sell. Aside from the upheaval of accommodating construction phases and compromised living spaces during the project, the planning process can take up quite a bit of time and require a lot of big decisions.
As part of the planning, evaluating the project’s budget and its impact on value should be considered a top priority. Even if a homeowner is fortunate enough to have the means to pay any price, every major real estate improvement should be measured as an investment against its market potential.
Read the below to find out more on four home investments, and whether they add or decrease value to your home:
The roof is essentially the most important, and probably the most expensive, upgrade that you might need to make to your house. Roofs can be updated by replacing broken or missing shingles or painting where necessary. Potential buyers will not only be interested in how your roof looks, but the ventilation and energy efficiency and of course – warranties.
Having a backyard pool for summer parties or quiet relaxation is a fun idea, but is not everyone's cup of tea. In fact, if you're selling a home with a pool, some families won't buy a great home purely because they don't have the time or desire to keep up with the maintenance, or don't want their small children near it. So before you add a pool to your house while planning to sell, it is essential to consider both the pros and cons.
A finished basement adds so much value to your home, as it greatly increases your living space and square footage. Some home buyers also look at finished basements as potential income opportunities by renting them out, or by turning them into an in-law suite. Not having to put any work into finishing the basement immediately increases the lucrativeness of the house.
While landscaping your home is beautiful, some people's tastes don't always align with others. Also, not everybody enjoys spending all of their outdoor time gardening, and working in potentially inclement weather in order to keep it up to par. Therefore, it is best to keep the landscaping tidy, but not over the top so potential buyers wouldn't feel overwhelmed.
So, regardless of how much pleasure, convenience or efficiency you may gain from a renovation or outdoor upkeep, it’s important to know that you are making a measurable investment from your lender’s perspective. In other words, the bigger the project, the more mindful you must be about market trends and resale value. With that in mind, if a major home renovation is something you want to consider, don’t hesitate to call for a frank discussion about your plans – and your home’s resale potential.