Before you begin any value-increasing projects, remember not to raise the value of your property too far above others in the neighborhood. People who want expensive homes shop exclusively in pricier neighborhoods. A good rule of thumb: keep the value of your property within 15 to 20 percent of your neighbors’. Remodel with mass appeal in mind. Potential buyers are usually attracted more to neutral, mainstream design. Don’t go cheap when it comes to construction. Use durable, quality materials. If you’re a do-it-yourselfer, honestly evaluate your ability to do it right.
What is value?
Now that you know a bit more about the subject, what does value really mean? The best way to understand the importance of value is to see it in action. My team and I recently sat down to watch an episode of HGTV’s “House Hunters International.” The episode took place in an up-and-coming neighborhood in Taipei, Taiwan, and featured a husband and wife who decided to move to the place because they thought it was a great opportunity to find a great job there. It turned out, however, that the couple did not do much to prepare the home for sale, and the value of their home fell dramatically. My team and I watched in horror as the couple questioned their decision, even going so far as to tell the real estate agent that they would go back to the States and buy the home if they had the chance.
Strategies for increasing property value
The goals of renovating a property, regardless of how ambitious you are, generally have to do with improving its aesthetic appeal and value to potential buyers. For that reason, you’ll want to follow one of these simple, three-step strategies to increase the home’s value:
- Potential buyers are usually attracted more to neutral, mainstream design.
- Appealing to everyone’s tastes is a great way to improve the value of your home. Add appealing outdoor features . The landscaping and exterior enhancements bring a house’s “personality” to life.
- The landscaping and exterior enhancements bring a house’s “personality” to life. Consider your window sills and doors. Window sills and door details can offer a property’s age and past, as well as appeal to buyers who are keen on the “investment” aspect.
What should you do before beginning any projects?
It’s a good idea to establish a clear timeline for your projects. Do you want to complete them all in one month? Do you want to take them slowly, or do you want to devote a weekend to each project? Consider your personal needs and financial resources, and plan your strategy accordingly. If you live in an apartment and have limited space, consider giving each room a very small makeover. If your goal is to finish a project and move out in the same year, your plan should be more ambitious, involving multiple projects simultaneously.
When it comes to construction, what should you keep in mind?
Builders make mistakes all the time. With all of your renovations, make sure that you maintain the quality you had originally hired for. If you mess up, your ability to value the home for resale will be at stake. Do your research, choose an architect who’s done his or her homework and is dependable. Find someone who’s capable of giving you a professional estimate. What’s the time frame for a home to hit its full potential? Home values usually appreciate in the first year of homeownership. Be proactive: make sure you’re doing the right things and the right things are happening. As you get more settled in your home, you’ll be better positioned to capitalize on that upward trend. That’s right, I said to capitalize on it. There’s an uptick in consumer spending this time of year.
DIY tips and hints.
The following DIY projects can increase the value of your home and other properties.
- Replace outdated gutters and downspouts.
- Remodel your front porch.
- Add window shades to accentuate a view of your backyard.
- Update light fixtures.
- Build a new deck.
- Create or renovate a game or entertainment space.
- Add a garage.
- Update a bathroom.
- Revamp a bathroom.
- Add flooring or a closet.
- Fix leaky roof gutters and downspouts.
The state of a home’s value will determine how much you can realistically sell it for when you’re ready to move on to your next project. Understanding the real estate market is a good starting point to determine where you should begin your home improvement projects.