If you are considering selling your home in todayâ€™s housing market and think it needs some sprucing up, make sure you donâ€™t waste time and money on something that isnâ€™t going to yield a valuable return at the time of sale. In 2005 home improvements may have yielded a great return on a small investment, however in todayâ€™s housing market it is difficult to see a return on value.Â
-In 2005, the average project boosted the home's resale price by 86.7% of the job's cost, according to an annual survey by Remodeling magazine. After years of unbroken decline, that figure fell to 63.6% in the 2009-2010 survey, with the average project costing $50,908 and adding only $32,497 at the sale.
One of the easiest ways to get a return on home improvement is to change the entryway door. This is coupled with the importance of curb appeal in todayâ€™s market. Sprucing up the exterior of a home of course provides for a good first impression for a potential buyer, and improvements such as new windows and manicured landscaping are an inexpensive way to get a more secured return on value with your investment.
-Among the 21 "mid-range" projects of relatively modest cost, the only one to turn a profit was entry door replacement, a $1,172 job that returned 128% of its cost. The attic bedroom returned 83.1% of its cost, the wood deck, 80.6%, vinyl siding, 79.9%, minor kitchen remodeling, 78.3%, and wood window replacements 77.3%.
While many homes are still located in a declining market, timing is crucial when selling a home. Most likely the longer the home stays on the market, the lower the final sales price will be. If you are considering selling your home, before you put it on the market, ask your Realtor what you can do to make the most out of your showings. Fresh paint and a clean and uncluttered home is always most appealing to buyers during a showing of your home and the cost is minimal. Having an outsider give tips on what you can do to improve the curb appeal and feel of your home is valuable information that can help with the sale of your home.
If you do not plan on selling your home right away and are pondering what improvements you should and shouldn't make, call your Realtor and ask them for advice before starting your renovations and make them a part of the process. This could save you thousands in the long run and help you avoid wasted expenditures that may have little to no return on investment. Finding what actually adds value and what doesnâ€™t give a return on investment before you make the improvements is a smart way to approach home improvement.
Looking to buy or sell in the Central Florida area? Call or e-mail me!
Timothy Bratcher, Realtor