Even during the recession, the home improvement craze in the U.S. continued, unabated. In fact, between the years 2000 and 2009, the average homeowner spent almost $2,500 a year on home improvement projects, according to a Harvard University study.
Improving a home to get it ready for the market, with an eye to increasing its value, is a tricky proposition. It’s all too easy to over-improve the home for the neighborhood.
The best way to proceed with any such project is to get in touch with Team Lindahl. We’ll help you determine the current market value of the home. Why is this important?
The market value of a home – what it will sell for to a willing buyer – is determined by the sales prices of similar homes in the area. The process to determine value includes the age of the home, condition, square footage, number of bedrooms and bathrooms and any improvements made to the home.
With a CMA (comparative market analysis) in hand, not only will you know the starting value of your home before performing improvements, but you’ll also receive the all-important sales prices of nearby homes.
Keep in mind that when determining which home improvements to make, when all is said and done, the home will only sell for the maximum sales price of similar area homes.
The Next Step
Now it’s time to determine just what improvements you can perform that will actually add value to the home when it goes on the market.
One of the most popular home renovation projects is a bathroom remodel. The nationwide average cost for this project is $62,834. The return on this investment is 77.6 percent, or $48,777, according to Remodeling Magazine’s annual Cost vs. Value Report.
If that return is higher than the market will bear, it doesn’t make sense to make the improvement to a house you’ll be selling.
To avoid the dangers in over-improving your home, choose your projects carefully and learn the maximum potential sales price you’ll realize from the performing the improvement.