Behind The Scene
As more and more sellers decide to take advantage of this unbelievably hot sellers’ market, many are preparing to get their homes move-in ready to go on the market for top dollar. Others are deciding to stay where they are and update or renovate their property. Either way, both are interested in what improvements will add the most return for their investment. Surprisingly, it’s not always what you’d think.
With more than 36 years of experience in real estate, Team Athey & Remarkable Property Management has learned a thing or two when it comes to home updates and renovations. While many make a property cosmetically more appealing, it can sometimes be difficult to get your full investment back on the improvement when it comes time to sell.
For example, while installing a new pool immediately brings a return on enjoyment, it might take seven to nine years for the cost of the pool to pay off as an investment. That’s assuming the housing market does well and your home continues to escalate in value. Still, you may not recognize a dollar- for-dollar value when the home appraises for sale. However, a beautiful pool area may persuade a buyer to purchase your home over another
This same over-improvement principle holds true for outdoor kitchens, gazebos, workshops, and accessory dwelling units. Buyers may consider them a plus, but appraisers may not recognize the value of these additions when comparing your home to other homes in the neighborhood.
Let’s stop for a moment and check out the definition of an accessory dwelling unit. An accessory dwelling unit is really a fancy name for a second smaller dwelling on the same grounds as the main home. Think garage apartment, basement apartment, carriage house, or possibly a tiny house (on its own foundation) in the backyard. While great for gaining rental income and/or housing a family member, an accessory dwelling unit, despite its fancy name, doesn’t necessarily add dollar- for-dollar return on your initial investment when you go to sell. But as we mentioned, it has the potential for rental income which will help offset its initial cost. Just be certain you have all the proper permits and licenses you need to construct one of your property.
So what improvements do add the most value? Remodeling or updating kitchens and bathrooms will bring the most bang for the buck.
That’s because kitchens and bathrooms are where people spend a lot of their time. And buyers (and appraisers) consider them really, really important. In fact, many buyers consider kitchens and bathrooms their number one reason for buying a home.
Other cosmetic additions such as lighting updates can bring a good return. Replacing a popcorn ceiling, updating worn carpet, installing or repairing hardwoods, and painting the home in fresh, neutral colors are others where you will likely recoup your investment.
But having said all this, Team Athey would like to remind you that some of the simplest improvements you can make to your home require very little overhead costs.
Don’t forget to replace the AC filters, and make certain the doorbell and mailbox are in working order. Is your front door and entry super clean? No spider webs or grime on the outdoor lighting? Because this is where potential buyers will get their first impression as they stand and wait for the realtor to open the door for them. Yes, these are small things we know, but buyers will notice. Believe us, we know.
I’m Suzanne Athey, the founder of Team Athey & Remarkable Property Management. I hope this post has inspired you to make the best possible improvements considering your individual lifestyle and family. If you’d like to know more about what makes homes sell, call me at 469-916-1222 or email me at suzanne@teamathey.com. I’d love to visit with you and answer all your questions.
