Which Remodeling Projects Offer The Best Return On Investment?
Contractors are more affordable than ever as construction costs have come down in price in the past few years.
If you’re considering a remodel you may want to consider several factors before you invest in a costly project.
First, make sure you aren’t over doing it. Know what your potential buyers are demanding and don’t get carried away with fancy upgrades if you’re not in a high-end market.
Cautiously add rooms to your floor plan. Be sure you’re not converting a garage or a patio into extra square footage without the proper planning and permits or you won’t be able to count these rooms into your square footage in your sales price.
Thinking of putting in a pool? Pools don’t usually sell homes or increase the asking price considerably. Not everyone wants to worry about the maintenance or the risk they’re assuming with a large water feature.
Below are the top three ways to recoup your costs on a remodel.
- Kitchens. Where does everyone always end up congregating? Around the kitchen. If you spend most of your time in one area of the home it should be the nicest.
- Bathrooms. Spa indulgence has replaced old linoleum and outdated fixtures. Spending extra money to spruce up the bathroom will pay off when you put the house on the market.
- Outdoor improvements. Landscaping, roofing and window upgrades can be relatively inexpensive ways to beef up the price of a home without breaking the bank.
Five Steps of Selling Your Home
- Develop your home selling strategy. Choose a listing agent, determine the price and the anticipated time frame in which you need to, or would like to, sell your home.
- Make all necessary repairs inside and out to help your home stand out above the competition. (See, “Curb Appeal” and “What You Can Do Today To Get Your House Ready”)
- Market your home. Put up “For Sales” signs in visible locations, host realtor walk-thrus, hold open houses, and try other strategies your realtor may suggest to attract traffic to your home.
- Negotiate an offer. You may have to be willing to accept a lower offer in order to please today’s buyer who is looking for a good deal. Consider how much you could lose if you don’t accept a lower offer. In some cases, taking a few thousand dollars off the asking price will save you money down the road if the home stays on the market for a long period.
- Closing the deal. Be sure you understand all of the terms of the sale before you sign. Your realtor should review the contract in its entirety with you. Ask questions and address concerns before you sign on the dotted line. Then be prepared for a whole host of paperwork in order to close escrow.
