How do you increase the value of your property?
The biggest factor outside of a homeowner’s control is market conditions. But other issues -- including the condition of the property, specific home improvements and neighborhood stability and safety -- can influence property values.
Specific home improvements can increase the value of a home. Some of the improvements can actually increase the value of the home above the cost of the improvements. According to Remodeling magazine, which publishes an annual “Cost vs. Value” remodeling report, a remodeled bathroom returns 81% to the owner, a bathroom addition, 89%, and a master bedroom suite, 82%.
Remember, quality pays. Well-planned and well-executed remodeling jobs are a good investment while bad work seldom enhances value or livability.
Kitchens and bathrooms still sell homes today. Buyers love nice kitchens and glamour bathrooms with those big nice tile showers.
Stability and safety can also affect property value. If you live in a high-crime area, an organized community watch program not only will lower the crime rate but also have been known to enhance property values.
What kind of return is there on remodeling jobs?
Most recently, the highest remodeling paybacks have come from updating kitchens and baths, home-office additions and extra amenities in older homes. While home offices are a relatively new remodeling trend, for example, you could expect to recoup 58% of the cost of adding a home office, according to the survey.
What about a pool?
I’ve been asked several times about the value that a pool will add to a property. This is not as simple to answer as it depends on several factors that you might not think of right away. For example, how many pools are there in your neighborhood? Let’s say that you live in a neighborhood where the homes are relatively similar, the average home value is 100,000, and you spend $25,000 installing a new swimming pool. If you have the only pool in the neighborhood it will not be worth as much as if there are other comparable homes with a pool. It could mean the difference in recouping 30-50% of your investment vs. 60-70%. Price range of the neighborhood would be another major factor.
Determining what types of improvements to make to your home vs. the value it will add can be difficult. Before starting an overhaul of your home, talk to a REALTOR or an Appraiser about what your home will be worth with the improvements you want to make. -mr
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Questions for Mike Randall
Coldwell Banker Pinnacle Properties
2093 Florence Blvd, Florence, AL 35630
Mike Randall, REALTOR® Associate Broker | ABR, CRS 256.366.9779 | www.mikerandallhomes.com Coldwell Banker Pinnacle Properties 256.766.0069 Office 256.766.0926 Fax