Getting your money’s worthJeff Geoghan
This week a customer Facebook-messaged me about his interest to doing some significant yard renovations this spring, to the tune of $2,000. He wanted to know if he would get that much more in resale if he does the work.
This is a common concern of many property owners with an eye for moving in the future.
The answer generally comes in two flavors: Does the improvement create a change in the property that an appraiser would make note of, and/or does the improvement make the home more marketable over its competition?
A good real estate agent will be able to help with both of these questions. In the first instance, things like new roofs and pole barns will likely end up on the appraisal and thus become a material help to the valuation of the home. However, there are many more improvements that an appraiser will likely gloss over; a new kitchen or new flooring throughout will merely bump the condition a notch of two – not enough to give more than a couple of thousand as opposed to the large investment needed to get them done in the first place.
In my customer’s situation, a lot depends on where he’s spending the two grand. If it’s all along the front walks, driveway and roadside, then I would say he’ll likely “get his money’s worth,” because it will lift his curb appeal above his competitors (other homes for sale that buyers will be looking at). This in turn will give him a bit of a price bump. $2,000 worth? Sure.
Not every property owner can get their money’s worth, however, and in some cases they might even get hurt; installing a fancy pool might not make a home a big hit with many buyers, for example.
When you’re thinking about selling, you should start getting professional real estate advice on all your expenditures – just to be safe. With any luck, you’ll make wise investments and get the most from your ultimate home sale.