Are you excited on improving your home? Honestly, not every improvement, transformation and expansion to a home is a good idea. The worth of your property is established with factors and improvement is just a part of it. Good thing, there are different ways on how to avoid over enhancing your home.
What does over enhancing a home mean?
Over enhancing a home simply means to invest more money into your property than what you can get. It may never be worth more than a specific amount of money even though you made expensive and classy renovations or improvements. Why? The location, square footage and neighboring comparable sales all determines the value of a home. If the property is located in let’s say small town with low population and has gone through an extravagant renovation, the home may increase its worth but the owner won’t be able to completely recover the cost of the materials in building the home.
Five Simple Ways on How to Avoid Over Enhancing a Home
1. Think about the length of time you intend to stay
First of all, how long do you plan to stay in the home? If you only plan to stay for a few years before selling it in the market, then we absolutely don’t suggest over enhancing the property. It’s just a waste of time and money on unnecessary improvements that won’t benefit you in the long run and won’t be able to get your money back. However, if you decided to stay forever then go ahead and renovate all you want. Besides, you will be expanding and improving your own dream house.
2. Know more about the “comps” in your area
“Comp,” also known as comparable sale, is the main tool used in the world of real estate to find out a property’s market value and pricing. In general, comps help the buyers as well as the sellers to know more about the value of a home plus the market outlook particularly in their area. Real Estate Agent and appraisers are the ones who evaluate comps to find out how much is the value of a home. If you want to enhance your home remember to check the comps in the neighborhood to know how much a home like yours really worth. It will give you a good idea on how much a buyer is really willing to pay for the same property in your vicinity.
3. Select materials that are reasonable in price
In improving or enhancing a home, doesn’t mean you have to buy expensive materials. To lower the costs we highly recommend using more general, less expensive products and materials. If you want to sell the home in the future, it is important that upgrades are somewhat basic and neutral to have wide range of buyers. Keep in mind: Not all buyers will like your taste in wallpaper even if it costs too much.
4. Concentrate on improving areas that will add to the home’s value
Before you get too excited with upgrading, make sure to focus on the value of money you will get in the future. Great examples are landscape transformation; from old windows change it to energy-efficient ones, putting an outdoor deck, revision of a master bathroom and modernization of the kitchen. These examples will surely add great value to your property as well as more pleasant to live in.
5. Don’t purchase a home that is too pricey
If you choose to buy an expensive home, you will not get your money back on any upgrading or enhancing. So when buying a home, make sure you are paying for what it’s worth. To avoid buying an expensive property, we fully suggest getting a professional and honest Real Estate Agent to assist you. Having an expert and qualified realtor will definitely stop you from buying expensive home.
What if I already over enhanced the home?
If you are planning to live in your home for a long period of time then you don’t have to worry if the property is over enhanced. What’s important is you’re able to benefit from the upgrade and have a comfortable and enjoyable life. But, if you plan to sell the home few years from now, over enhancing a home is not advisable. As a seller you should not expect to get what you paid dollar for dollar for every changes made to the home. Just a piece of advice, get an experienced listing agent to estimate the home in order to sell the property for what it truly deserve.