As a homeowner, it’s important to know what changes to your home increase its worth, versus what changes may add appeal but not actual value.
Since your ownership in a home is largely a financial investment, you’ll of course want to see a return when you sell it, right? Nobody wants to pour a considerable amount of money into a house only for it to not pay off in the end!
If a homeowner is looking to make updates to a property with the intent to sell, it’s important to keep in mind what the majority of buyers find desirable. Upgrades to kitchens, such as the appliances, and bathrooms nearly always increase value to your home. Updating flooring and paint colors to be uniform and neutral will also add value. These, along with a manicured and inviting outdoor space, are all going to work together to set your house apart and attract buyers.
On the other hand, a newer roof, a newer HVAC system, a newer water heater, and other updates that affect the safety and/or functionality of a home add appeal to buyers, but they do not typically add value, as every buyer will expect that a home has a functioning and adequate roof, HVAC, water heater(s), and the like. The addition of a pool will add value, but not to the extent that it cost to put one in. Typically, pools retain 15%-25% of the investment. Pools are an improvement that a homeowner does for themselves and not because it provides a financial return on investment.
All this to say, your home is just that… YOURS! If you have extremely personal taste and no plans to move, we absolutely encourage you to make your home your own. Paint that wall red! Buy the loud wallpaper! Do the upgrade you want simply because you know you’ll love it! Life is too short to keep your home neutral if you don’t want to. Make your home your own, but also be open to the knowledge, experience, and suggestions from your REALTOR® if/when it comes time to sell. They’re working in your best interest to reach the goal of selling your home and getting you top dollar!
For detailed information about the impacts of your remodeling projects, check out the National Association of REALTORS® 2022 Remodeling Impact Report. If you would like to speak with one of our agents about an update you have made or plan to make and what that means for you home’s value, contact us!