If you're considering multiple home improvements, you may want to weigh the cost of those projects against the value the updates will add to your home, especially if you plan to sell within the foreseeable future. If you've been wondering what projects can add the most value to your bottom line, here are a few suggestions.
- Real estate agents will tell you that among the key areas that help to grab a potential home buyer are the front door, the entry-way, the landscaping, the kitchen, bathrooms, and the master bedroom. If your goal is to raise your home's "sellability," start with those areas. Paint and flooring are also important.
- If your home needs major work, particularly projects that will incur substantial expense, such as foundation repairs, roofing, or appliance replacement, it generally makes sense to do these repairs if you plan to stay for three years or more. This is also true if you're trying to sell your home and your equity is limited.
- If you plan to sell soon and you have a large amount of equity in the home, you may want to simply lower the price and allow the buyer to shoulder larger repairs. You can still clear a good profit in the sale, and the buyer will feel like he or she got a better deal. The lower price may actually help you sell more quickly, since it will be below that of similar homes in the area.
- Room additions present another quandary. Should you add on or just move to a larger home? If you like the neighborhood, a room addition such as an enclosed patio or a bump out on a second story may make sense. But take care not to overbuild for your area, as it may make it difficult to recoup your expenses or the original integrity of the house.
- Before you make a firm decision about possible work, write down an estimate of your home's worth. Check your local newspaper or online listings for houses in your immediate neighborhood to help calculate its approximate value.
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