The Real Estate Browser Volume 7, Issue 16 | Page 8
8 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 7 Number 16
www.LynchburgRealEstateBrowser.com
Home Improvement Projects:
Which Ones Generate the Best Return on Investment?
by Dan Vollmer, Associate Broker, ReMax 1st Olympic
I often get asked about
home improvement projects
- which ones generate the best return on investment, and how to prioritize that never-ending
‘to do’ list. There are a couple way to look at this
question. Some folks plan to stay for many years,
in which case they will get the use and enjoyment of whatever upgrades they chose to do. On
the other hand, some homeowners are preparing
their home for the market, and they just want to
make it as compelling an option as possible.
If you’re in the first set (those planning to
stay), I would say to do the projects that will
make your life easier or that will allow you to use
your home in the way you want. For example: if
your kitchen has a poor layout, older appliances
or unappealing finishes - go ahead and make the
change. Anyone who watches any HGTV knows
- kitchens and baths sell houses.
Here’s the key, though… some of those projects are expensive, and it would be tough to
recoup all of your investment if you were planning to sell right away. So if you’re pretty sure
you’re going to stay, put in the money and do it
the way you want it. Finish off that basement.
Add that screened in porch or expand the deck.
You’ll get to enjoy it for many years to come, and
by the time you decide to sell, you should regain
most of what you spent.
On the other hand, if you’re in the second
group (those planning to move), the approach is
the opposite. With this perspective in mind, you
want to look for the lesser expensive projects that
will do one of two things: 1) add appeal; or 2)
remove an objection.
In terms of add appeal, perhaps you could
spruce up your landscaping with some flowers and/or ground cover. I know you’ve heard it
before, but fresh paint will do wonders. The trim
in your house is probably dinged, knocked and
generally worse for wear. Just use the same color
you already have and touch it up. Same thing for
the rooms - if its an appealing and neutral color,
just go back over it again to give it that ‘new’
look.
In terms of removing objections, here’s the
thing to keep in mind. When people look at your
house - after all, you are getting ready to list &
sell it - you don’t want them to see the projects
they will have to do when they move in. The
more things you can take off their mental list, the
more appealing your house is to them. So if you
have out-dated light fixtures, cabinet hardware or
bathroom fixtures - take an afternoon and a few
hundred dollars and swap them out for current
ones. Old and dated wall paper can come down.
Carpet can be replaced.
So based on your plans for the future and
how long you plan to stay, these tips will get you
started on organizing that pesky ‘to do’ list. Good
luck!
Have a question about real estate you’d like to
have answered? Email me at dan@DanVollmer.
com