In the current market, resale value is important to consider. The value your home may hold when you decide to sell can raise, lower or stay relatively even. The changes you make or factors you consider when buying can hold or even increase the value of your home.
There are many qualities about a home that come into play when considering resale value. First, you must keep in mind the time you plan to spend in the home. Are you going to live there for 5, 10, 15+ years? Consider your schedule and the amount of time you plan to spend in the house, these factors can determine the amount of renovations you have time to complete, as well as the location you may want to select.
Think about what you are looking for in your first, second or third home. These qualities are most likely what other buyers are looking for as well. Qualities like, character, charm, spacious rooms, modern kitchens and big lots are high on buyer’s lists. Obviously these qualities may change depending on location (i.e. city versus country) but many of the qualifiers are the same.
High Resale Homes for a City Have:
• A master bedroom with an ensuite bath
• Walk-in closets
• Parking options
• Both an eat-in kitchen and a dining room
• Outdoor space
• A fireplace
• Quality flooring
• A well-maintained interior
• Special added touches that contribute to the home's character (i.e. a spiral staircase, crown molding, wood or marble flooring, arched doorways, French doors)
These things often leave a lasting impression on potential buyers and the more of these items your home in the city has, the higher its resale value will likely be.
High Resale Homes for the Suburbs Have:
• Three or more bedrooms
• Three or more baths
• Walk-in closets
• Two-car garage
• Manicured lawns
• Attractive landscaping
• A deck or patio
Unique features that add to curb appeal also help homes maintain their resale value. Pay attention to how the houses that you are looking at fit into the neighborhoods they are located in. Houses with resale value should subtly stick out from the rest of the homes around them. These subtle features can come in the form of a larger lot, unique architectural touches or stained glass on the front door. These accents will help tie in potential buyer’s right from the beginning.
If you are in an older home and looking to renovate, here is a list of popular renovations and their rate of return.
Avg. Cost = $14,000 – Rate of Return = 74% – Value at Sale = $10,360
Avg. Cost = $30,000 – Rate of Return = 75% – Value at Sale = $22,500
Avg. Cost = $55,000 – Rate of Return = 79% – Value at Sale = $43,450
Major Kitchen Remodel:
Avg. Cost = $55,000 – Rate of Return = 83% – Value at Sale = $45,650
2nd Story Addition:
Avg. Cost = $110,000 – Rate of Return = 83% – Value at Sale = $91,300
Window Replacement (Vinyl):
Avg. Cost = $10,000 – Rate of Return = 84% – Value at Sale = $8,400
Window Replacement (Wood):
Avg. Cost = $11,000 – Rate of Return = 85% – Value at Sale = $9,350
Minor Kitchen Remodel:
Avg. Cost = $18,000 – Rate of Return = 86% – Value at Sale = $15,480
Avg. Cost = $9,500 – Rate of Return = 87% – Value at Sale – $8,265
Remember, these are averages and will be different based on the materials used and the styles incorporated. If you’re going for maximum return, keep your designs fairly neutral. You can add your personal style or flair by using accessories, pillows, art, etc…, but you’ll want your overall design to appeal to as many buyers as possible in order to increase the resale value. This means, be sure that all your renovations are fitting and appropriate for your neighborhood and home demographic. Renovations that would fit into a neighborhood with $1 million homes may not fit in neighborhoods with $300,000 homes.
According to a 2011 survey performed by CalFinder- Nationwide Remodelers, replacing siding topped the list of home improvements with the highest resale value. It keeps the inside of your home protected from insects, mold, water damage and drafts, while enhancing your homes curb appeal. Improving garage doors as well as front doors was also high on the renovation list bringing in 84-102% return.
~Submitted by Kreya Kadam