Factors That Influence Your Home’s Resale Value
Here are some of the most important factors that influence your home’s resale value.
Prices of similar houses in the neighborhood
These comparable homes are often referred to as “comps”. Whether it’s a comparative market analysis done by an agent or an actual appraisal, most real estate experts will rely on comps to estimate your home value. The only problem is that no two comps are identical. So you need to account for key differences and correctly value each different feature.
Location, location, location
The quality of schools nearby, employment opportunities, and the proximity to shopping, entertainment, and recreational centers.
A home’s size and usable space
A bigger home doesn’t necessarily result in a higher price unless that extra space is usable. The more bedrooms, the better but garages, attics, and unfinished basements are generally not counted in usable square footage.
Newer homes tend to be valued more. Critical parts of the house such as the plumbing and electrical system are newer and therefore less likely to break down. But, an older home that has been well maintained is much more valuable than a poorly maintained one.
The right upgrades such as the ones that make homes more energy-efficient add value to a home. But not all updates are valued equally and it also depends on the market you’re in.
Home Upgrades With The Best ROI
The key is knowing what upgrades increase a home’s value when the time to sell inevitably comes. You want to choose a home remodel that either add living square footage, makes the home feel more spacious and prettier with a low-cost investment, reduces the need for maintenance hassles or makes the house more energy-efficient.
Do a minor kitchen remodel
Kitchens sell houses and you don’t have to tear down walls to make yours more attractive. A minor kitchen remodel can result in an ROI of at least 77.6% due to the increased resale price, and if you make it more energy-efficient, the savings will only push the figure further up. It can be as simple as swapping fixtures with new drawer knobs, pulls, and faucets in a matching style such as brushed nickel and matte-type stainless steel that give a room a modern look. If you want a more classic look, go for oil-rubbed bronze.
Replace the front door
Replacing an existing entry door with a steel one has proven to recover anywhere up to 91% at resale as buyers appreciate the energy efficiency, low maintenance, and cold-blocking powers of metal.
Paint it neutral
Light and neutral wall colors help buyers easily imagine themselves living in the space. Lighter colors also make rooms feel more spacious and brighter along with reducing the need for artificial lighting which will reduce the need for artificial lighting.
Make it more energy-efficient
Installed or newly replaced HVAC makes a big difference because heating and cooling costs make the most of our monthly energy bill. Buyers are willing to pay a premium for appliances with the Energy Star symbol that reduce energy use without sacrificing performance. Energy efficiency can also be the result of replacing single-pane windows with more double-paned ones that do a much better job at insulating the home. Smart products, such as a smart thermostat, add an improved quality of life and pay off themselves by lowering your ComEd utility costs.
Home Renovation Tips and Tricks
Any kind of remodeling can seem overwhelming, but it’s guaranteed to go more smoothly if you know a couple of insider tricks.
Planning is key
The better you plan, the more likely you are to avoid costly and nerve-wracking delays. Make a timeline to account for each part of the project and allow a few extra days to address unexpected issues. Proper planning will also help you stick to your budget. Just make sure to reserve at least 10% for unexpected costs that are bound to arise.
Remember the big picture
Don’t fall into the trap of sacrificing function for form. If your end goal is to increase the resale value of your home and achieve the best ROI, this needs to guide your every decision.
Hire the right people
If a contractor’s proposal looks too good to be true, it probably is. As tempting as it is to pay less, don’t end up having to pay a lot more if things go wrong. The best way to hire to right people is by reference. If your friends or family cannot recommend you, someone, at least look at the previous projects of contractors you are interviewing. Once you find the right person and make a detailed contract, be a good boss by being in touch and following through with your renovation.
There are many different kinds of good ROI upgrades but it ultimately depends on the type of property you’re selling and whom you’re selling to. However, you can never go wrong by making your home more energy-efficient as both your wallet and the planet will thank you.