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Helpful Tips
2. Choosing Options That Add Value Will Payoff at
Resale.
Whether buying a new home or renovating an existing one, you
want the upgrades and options you choose to personalize your
home. However, if you are looking to recoup some of your
investment during resale, you need to know that not all
enhancements add value.
As a general rule, functionality wins over cosmetic and
neutral is preferable over the exotic. Current trends also
play a factor. According to HousingZone.com, some popular
features among suburban home buyers are: oak kitchen
cabinets with natural finishes, hardwood flooring in the
foyer, kitchen and hallway, kitchen islands and pantries,
and door levers instead of the traditional round knob.
If you are remodeling an existing home, take a look at
resale properties in your neighborhood and compare it to
newer properties. This will give you an idea what may be
considered a standard or luxury item.
If you are selecting upgrades to a new home, ask the builder
how much other buyers are spending on upgrades, as well as
the type of upgrades. Use this information as a gauge so
that you won't over-improve your home. National research
shows that the typical home buyer spends $5,000 to $7,500 on
options (source: New Home Options Become
Commonplace, Sept. 19, 2001, Realty Times).
Your real estate professional can also give you guidance on
the type of options and upgrades that can add resale value
to your property.
Below are some enhancements that will more than likely
provide a return for your investment.
Wiring
In this age of high-tech, having your home wired for
high-speed Internet access and computer data ports
throughout the house is a plus. In addition, extra ceiling
fan outlets give buyers the flexibility of adding more fans.
Fireplace
This is a valuable option that is worth more in certain
locations such as the family room rather than in rooms such
as guest bedrooms.
Flooring
Upgrading your carpet padding can make your carpet last
longer, especially in high-traffic areas. You may also want
to upgrade the carpet in those areas as well.
Hardwood floors are another popular feature that many buyers
are interested in and are willing to pay extra for.
Kitchen
Updating your cabinets and counter tops are just two minor
changes you can make that will modernize your kitchen and
increase your home's resale value. According to
Remodeling magazine, minor kitchen enhancements return
more value than any other remodeling project.
Siding
New siding can give a much needed facelift to an older home.
Vinyl siding is preferable because it comes in almost any
color and wood texture. It is also easy to maintain.
Decks
Adding a deck can provide a comfortable outdoor setting for
homeowners to get some fresh air, relax and entertain.
According to Remodeling magazine, deck addition
projects recoup 54 percent of the initial investment at
resale.
Although, your home is an investment, it is just as
important that you are able to enjoy it. Just because an
enhancement doesn't add monetary value doesn't mean you
shouldn't add it. So, go ahead and add the two spas in the
back yard or the fireplace in the kitchen. Just be aware
that if you do, don't expect others to want to pay extra for
it. Most future homebuyers will be willing to pay more for
the upgrades, but not substantially.
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