A question that I receive often is "Jacci, how do I add value to my home?"
While this sounds like an easy enough question, I often have to consider a couple of factors before I blast out an answer. The truth is, there are many factors that play into a decision to attempt to add value to your home, as well as several different ways to achieve the goal.
One of the primary factors that will inform your decision is to identify your overall goal. So it's not only a HOW question, it's also a WHY question. Here are the three major reasons why you would be seeking to add value to your home:
You Are Selling your home and wish to increase the value.
You are doing a rehab (flipping a home) and wish to increase the value. (Obviously!)
You are keeping your home and wish to increase the value (for personal enjoyment and long-term investment).
Let's break it down by goal and talk about ways we can add value to your home.
1. You are selling your home and wish to add value
This is fairly self-explanatory. You want to sell your home at a higher price. So how can you do that? Well, in this case you should be looking to add things that spruce up the attractiveness of the home to potential buyers. That means giving the place a bit of a facelift- this isn't the time to start a major renovation in the hopes that it will add value to the home.
Increasing curb appeal is something you can do for the exterior. This can mean a new paint job, some landscaping, or replacing the front door-- all things that can give you maximum "attractiveness" for potential buyers.
When it comes to the interior of the house, you should be thinking the same way. With a discerning eye, take a look at the three F's (fixtures, floors, and finishes) and make improvements to those areas-- these types of fixes go a long way in the minds of buyers.
Remember, unless there are major fixes you need to do to actually make the home functional, adding value to your home before selling it is all about appearances and making the home more attractive to potential buyers.
2. You are rehabbing a home to sell and wish to add value
Okay all you rehabbers. The reason you bought the home in the first place is to increase the value of it and sell it, so everything you do should be with that thought in mind-- to make the biggest profit possible. The thing is, if you are rehabbing a home, chances are that you got a good price on the property because it has major issues.
So what I tell rehabbers is this-- don't skimp, but don't go overboard. There's no reason to put marble floors in a house when hardwood will do fine. Do you get my drift? When you're doing a rehab, you need to always make sure to keep the following in mind:
- Know your numbers!
- Prioritize your repairs
- Understand the region you are working in and KNOW YOUR POTENTIAL BUYERS
3. You are keeping your home and you wish you add value
So you are keeping your home, but you'd like to add value for the future. So concentrate on adding things to your home that you will enjoy... but also keep an eye on the future by doing things of lasting value. For instance, doing a kitchen remodel might be a great idea if you have the funds. You get to enjoy a beautiful new space, and it will also make the home more attractive to buyers in the future.
On the flip side, putting in something such as an unground pool is a step you might want to think twice about. You might enjoy it for a few years, but the cost of putting it in and dealing with the upkeep just won't equate to a big return on your investment when you do sell it down the road.
The bottom line when it comes to adding value to your home? Know your goals and pay attention to getting value while adding value!