*Note: This was written by an Associated Content Contributor. Sign up to start publishing your own finance articles.
My job as an Associate Broker in Virginia is to help buyers find what they're looking for and to help sellers get rid of what they have. But with the economy tight, folks wary about changing jobs, moving to a bigger/better house are out the question for many. So improving, upgrading and adding-on is a popular stop-gap as homeowners try to make what they have already, work for their families.But we also see things that are mistakes. Lots of money spent on projects that are not going to have a return that's even close to what is spent, and that's a shame. Homeowners are convinced that their vision of 'better' is the same as everyone's and it's not. I like showing houses that have cool, fun, interesting, expensive or unique features. But in the end, most buyers purchase homes that are in line with their budget, not their fantasies.
Here are five things that rarely allow homeowner's to recoup their time and money:
1)Adding a swimming pool: Buyers fall into two categories; people who wouldn't mind a pool, and people who do not want at pool at all. The extra expense and time for maintenance, not being able to enjoy it year-around in many climates, the additional insurance risk...for a lot of potential buyers, it's a specific thing they don't want. If you are dying for a pool, put one in, but know you'll be doing for your enjoyment, not to jack up the value of your home.
2) Getting rid of a bedroom: If you have 3 small bedrooms, and think it's a great idea to combine two of them into one BIG bedroom, don't. More bedrooms is always better, even if they are a bit small. You may not need all your bedrooms, but don't get rid of them unless you just can't live with them. More is better than fewer when it comes to bedrooms and resale.
3) The mother of all bathrooms: Who doesn't want a spa-like bathroom? The double sinks, separate glassed-in shower with exotic tile, super-jetted tub...it's exciting to think about an in-home, luxurious master bath addition. But unless you have the Mother of All Master Bedrooms, hold back. A master bath is a strong addition, but most homes can get away with a nice vanity, and a tiled tub/shower with some great lighting and nice flooring. Most people WANT a fancy bathroom, but few will pay 100 percent of what you've invested to get one.
4) Adding a sauna: It's fun to show homes with saunas- I get a kick out of seeing them, too. They get a lot of buyer-attention as they go inside, giggle about being naked and sweaty, but then it's over for most. Saunas, like pools, are expensive and not widely appreciated. If you are Scandinavian and can't live without one, get it, but don't expect everyone to pay for the privilege.
5) Fancy Appliances: Stainless steel is one thing; the TV in the refrigerator that also is commercial-sized and has multiple zones? Great, if you're building a $100,000 kitchen. The wine-cooler, the super-quiet $1,000 dishwasher, the 6-burner gas stove? All possible signs of food-and home-improvement television envy.
Most families do not count commercial kitchens as critical to their home choice. Certainly, there are some buyers who want the trophy kitchen but can't (or don't) cook, but for the vast majority of folks, they want a contemporary, well-functioning kitchen with current appliances and features in a well-planned kitchen space. Being convinced that the upgraded appliances you covet will return dollar-for-dollar your investment is a mistake.
Before you start tackling a renovation, restoration, upgrade or remodel, call a real estate agent. They know what is trending now, what is selling now, what is valuable now. It's an ever-moving target and before you spend money, you should be aware of what does and doesn't matter to others.
More from this Contributor:
How to Write Contingencies for Contracts and Negotiations
There are no comments yet