I recived this great newsletter today from a colleague and I thought I’d pass along a few of the tips about home renovations.
“With home prices on the decline, some homeowners may be tempted to renovate their home to make it more desirable or valuable to potential buyers. But there are certain renovations that can actually decrease the value of your home – even in an up market.
If you’re trying to sell your home in the next 6 to 18 months, be extremely discerning about your choices, get advice from an expert real estate agent and appraiser before you begin any major renovations, and avoid these costly projects in today’s buyers’ market:
An in–ground swimming pool or hot tub – In certain parts of the country, yes, a pool or hot tub can increase your home’s value. But, for many potential buyers with young children, these items are a true liability and will only decrease your home’s value – not to mention the built–in maintenance and energy expenses that come along with them. If you’re looking to sell your home in today’s tougher market, you simply can’t afford to isolate a large number of potential buyers.
New additions – Of course, home additions add valuable square footage, but one false move and your addition can be an eyesore that could hurt your home’s value, even when the market turns. A well–designed new addition is time–consuming and expensive and needs to be properly planned and executed. If you’re looking to sell your home anytime soon, save yourself the hassle. With just a portion of what it would cost to add a new wing, you could upgrade your kitchen cabinets, appliances, and counter tops and get far more bang for your buck.
Conversions – Yes, with so much competition, it’s important that your home stands out from the crowd, but following today’s trends could cost you big tomorrow. Right now, space for a home office or a recreation room might be trendy, but converting a den or your garage into one can be a costly mistake. A good real estate agent can achieve the same effect by defining a space through staging. If you want to upgrade your garage, a new door is much cheaper and adds valuable curb appeal. ”
Wondering what kind of return you can expect on your hard work? Stay tuned I’ll be back tomorrow with the latest data from Realtor.org.