How To Maximize Your Return When You Sell Your Home
The “secret” to making top dollar when you sell your home isn’t really a secret at all – it's a basic knowledge that a lot of home owner just don't want to do or don't think they actually have to do it. But because it involves a lot of discipline and elbow grease, many people decide to cut corners. And that’s when the price you could command begins to drop.
Do not be one of those people. There have been countless examples where well-considered, well-placed investments of time and a little money have dramatically improved the sales price and increased the speed in which a home has been sold.
In today’s economy, there are no guarantees that you will recoup what you spend to improve the value of your home – all the more reason it’s important to pick the right investments.
But even when you don’t recoup all the money you invest to upgrade, many improvements can give you an important edge over other homes on the market. And the failure to make some improvements can leave you at a distinct disadvantage as buyers compare your home with the competition.
Unless your home is in mint condition or you’re selling it as a “fixer-upper,” there’s probably a long list of repair or remodeling projects to consider. These can range from relatively simple jobs, such as painting a bathroom, to more complex room-addition or remodeling projects.
In considering any home improvement project, you need to ask yourself a couple questions: Why are you doing it? Is it work that really needs to be done – a paint job or replacing a leaky roof? Or is it an amenity you’d like that you think might appeal to a potential buyer – a hot tub or home office addition, for example. Will it add value to your home, or have no impact at all? Or will it make your home more difficult to sell?
Some investments – like painting and yard work – involve relatively little cash outlay and yet return many times your cost. Other improvements that you think add value have no significant impact. Adding a swimming pool is a good example. Besides the hassles of maintenance, a pool can reduce your home’s appeal among families with small children because of safety concerns. You have to determine if the addition of a fixture will help or potential harm the majority of those looking to buy your home.
Items like unfinished bathrooms or leaky faucets and such are items that really should be completed. An extra bathroom can usually equal a greater amount of return then was invested. An extra bedroom or closet, pantry or den can also add to the value if you are considering it. Items like larger decks, added landscaping and carpet border on being a wash. It depends on the condition before the remodel as to if its beneficial or not.