When preparing to sell your home, people always wonder what improvements they can make that will get them the most money for their home. Some wonder, is it better to make the changes now or let the buyer come in and make their own design decisions? It is a tough question to answer and can really go either way. Some buyers like to add their own personal touch to their new home, some want to move into a home that is move-in-ready.
If you are considering upgrading your home before moving, one thing to be careful of is over-improving. By upgrading features of your home to a level that is not seen elsewhere in the area, you may put appraisers in a tough spot. While you and the buyer may feel the home is worth that much more due to the upgrades, the appraiser, and ultimately, the bank may not agree.
Let's take a look at the top five improvements that generate the greatest return on investment. These were certainly a surprise to me!
Attic insulation?!?!? Where is the fun in that? I guess energy efficiency and lower electric bills are something we can all understand would be of value to home buyers. I imagine that even if you weren't selling, as your home is aging new insulation can do wonders for you as well, paying for itself in a relatively short period of time.
Now for the five worst returns:
Pretty amazing, the worst returns are in the areas that most people look to improve prior to selling. Three of the five worst returns we see are on "upscale" remodels. It could be that buyers may not have the same upscale tastes as the sellers.
Even with this new knowledge, we know kitchens and baths are what sells. Upgrading these will make your home sell faster, but it is a fine balance between what they will cost and what they will return, in both money in your pocket and time on the market as a seller. If you are considering remodeling to sell, consider contacting a Real Estate Professional to give you an idea of what your home is worth in both cases, then decide whether or not it is worth it!
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