Additions/Renovations Your Clients Might Believe Add Value But Do Not
Becoming a knowledgeable real estate agent doesn't just happen overnight. It requires time, effort and experience gained by doing. At EXIT Realty Upper Midwest, we give you the proper training and tools to give you the best opportunities for success in your real estate career. Hear more from our franchisees on "Why They Chose an EXIT Realty Franchise".
In the meantime, here's a fantastic article from Jean Foldger at Investopedia, on six things a homeowner might believe add value to their homes but really don't.
Every homeowner must pay for routine home maintenance, such as replacing worn-out plumbing components or staining the deck, but some choose to make improvements with the intention of increasing the home's value. Certain projects, such as adding a well thought-out family room – or other functional space – can be a wise investment, as they do add to the value of the home. Other projects, however, allow little opportunity to recover the costs when it's time to sell.
(For more information on buying a home, see: A Guide to Buying a House in the U.S.)
Even though the current homeowner may greatly appreciate the improvement, a buyer could be unimpressed and unwilling to factor the upgrade into the purchase price. Homeowners, therefore, need to be careful with how they choose to spend their money if they are expecting the investment to pay off. Here are six things you think add value to your home, but really don't.
1. Swimming Pool
Swimming pools are nice to enjoy at a friend's or neighbor's house but can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children, in particular, may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an aboveground pool or filling in an in-ground pool. The one exception could be if having a pool is standard in your neighborhood, as it can be in warm states such as California, Arizona, Florida, and Hawaii.
An in-ground pool costs anywhere from $30,000 to more than $100,000, and additional yearly maintenance expenses are part of the package. That's a significant amount of money that might never be recouped if and when the house is sold. Put one in for your own pleasure, perhaps, but know that it could cost you when you sell your home.
2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel – such as adding a second story with two bedrooms and a full bath – might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes.
Read more on this great article from Investopia: 6 Things You Think Add Value To Your Home - But Really Don't http://www.investopedia.com/financial-edge/0910/6-things-you-think-add-value-to-your-home---but-really-dont.aspx#ixzz4oG1jz63r