The X-Factors of Property Value
Everybody loves when their home value appreciates. Whether it's from the housing market rising or renovations, there are several ways that you can both help or hurt your home's value!
Julia Weaver of the Redfin blog, addresses the big "DO NOTS" in her article, "What Hurts Property Value?". In Julia's article she emphasizes that quality is crucial to the outcome of home renovation. Trying to tackle a new deck project you've never done before can lead to wasted time and lost money. Make sure to hire a professional or seek consultation when taking on home projects. Julia also writes of how clutter can affect home value! When an appraiser is trying to get an accurate view of your property, clutter can definitely skew their assessment in a negative way. Check out the article to make sure you aren't falling victim to any other factors that might hurt your home's value! And if you need help clearing out that clutter, you know who to call! 😉
Increasing your home's value is a calculated science. Not all renovations are created equal. Some areas of a home are much more valuable in gaining an equity output. For instance, if you simply replace old appliances in your kitchen, you are not going to exponentially gain the value that you would from putting in new countertops and backsplash. Or take for instance, adding a pool in the backyard can actually decrease the value of your home depending on the circumstances. In other words, be wise of where you allocate your reno budget!
So what are the best improvements you can make to help your home value? Homelight.com created a list of 18 of the best return on investment projects you can do. One major note from this article is that positive ROI usually comes from more subtle improvements such as decluttering and deep cleaning. Decluttering can have as high as a 435% ROI, and deep cleaning as high as 935%! Major projects such as refinishing your bathroom or kitchen usually run negative ROI since initial investment is much greater. For example, a bathroom usually runs about a -1% return. Your best bet is to contact a real estate agent who is in tune with your market and what buyers are desiring at the time.
Don't wait until you are moving to get a head start on these suggestions! Spreading out projects over time will help reduce stress and budget constraints. Improving the value of your home doesn't only come into play when you're selling, but also when you are looking to refinance or take out an equity loan! Bottom line: home value is important! Do everything you can to help it!