How Do Home Improvements Effect The Value Of Selling My Home?

How do home improvements effect the value of selling my home? I have been asked this question by many clients who either plan on remodeling their home to get a higher sales price, or by clients who are afraid of over improving their home and not getting the costs back when they sell.

The value added for a home improvement differs from neighborhood to neighborhood, and for homes in a different price range. In general, a buyer of a home valued at $400, 000 or less does not expect hurricane impact windows and a garage. But, a buyer of a home in the $1 million plus price range will most likely want a two car garage and impact glass throughout.

A fun calculation: A new, remodeled kitchen will sell a home valued at about $400, 000 much faster, and the owner will gain about 125% of the cost of the improvement back. For example, if the new kitchen costs $20, 000 the value of the house will increase by $25, 000. If a house is valued at $1 million the seller will get about 200% back. For example, a $40, 000 kitchen remodel in this house will add $80, 000 to the value of the home.

Kitchens are very important and always help in selling a property. The second most important area for increasing home value are the master bathroom and the guest bathrooms. A remodeled bathroom will return 200% of the cost to the sale price of the property.

Inexpensive home improvements that will generate a good return are landscaping and painting. Curb appeal will add to a faster sale and bring a higher price for your home. Painting the exterior and interior with bright clean colors will bring more than double the cost of the job and will help selling a home faster.

If you are thinking about home improvements and want to know what today’s buyers are looking for, call Petra and she will be happy to discuss with you the materials, colors, and finishings most buyers are currently looking for.