Thinking of adding a pool? Want to add a new edition to your home? Planning to renovate the kitchen? While you may be thinking of these things for your own enjoyment, the big question is always how much is it going to add to the value of my home.
Most people just assume the bigger the renovation, the better the return is going to be when the time comes to sell. Truth be told, that may not be the case. There are a variety of reasons that the expensive additions you are adding to your home may not pay off in the long run.
That great pool you just added may worry buyers with young children who are concerned about safety. They would rather pay less for a house without the pool or opt for an amenity that will be more beneficial to their family, which could result in fewer offers for your home. 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 that the value of your home is determined by the market and what a buyer is willing to pay for it. There’s no rule that says that 50% of what you spend on the renovation or upgrade will be added to the value of your home. 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.
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 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.
Helen would be happy to review all your options and the market with you, so you can make the most educated decisions possible. Call her today at 847.967.0022 or email firstname.lastname@example.org.