It’s one thing to hope your home is the nicest on the block and another thing entirely to own the nicest home on the block. And, the latter isn’t what you should aim for when preparing your home to sell.
Sounds crazy, doesn’t it?
Not when you know how the market value of a home is determined. In a nutshell, your home is worth what a willing buyer will pay for it. Now, this isn’t necessarily what they offer you for your home.
The proof of what a buyer is willing to pay is what he or she actually pays. It’s what homes like yours have sold for in the recent past.
The reality is that if you make improvements to your home that bring the value to more than the neighbourhood average, your home might not sell.
Would you pay $500,000 in a neighbourhood of $200,000 homes?
Even individual rooms can be over improved and return zilch on your investment
The two rooms we choose to renovate most often are the kitchen and bathroom. If you plan on renovating them, ensure that you’re doing it for your enjoyment and not to add value to your home. Because, depending on the surrounding homes, it may not.
If you plan on moving soon, and the rooms need minimal work, go for it. Otherwise, “Save the million-dollar kitchen for a million-dollar home”.
Even if you aren’t planning on moving in the near future, some renovations will haunt you when the time comes that you want or need to sell.
Take the couple who decided that a walk-in closet was more important than a bedroom. So, they converted the small bedroom adjacent to the master into the dream closet.
Which changed their home from four bedrooms to three in a neighbourhood of four- and five-bedroom homes – a value killer.
The opposite holds true under certain conditions. Adding square metreage would seem to be a good thing, right?
And, it typically is, unless you add a room so large that it eats up the backyard or unless that excess square metreage figure swamps that of neighbouring homes.
Call us before you make improvements
Before one hammer hits one nail, you should know the current market value of your home and that’s something we can help you with.
It’s a free service, and we offer it to you regardless of whether or not you plan on selling your home soon.
Once you’re clear on its present value, you’re better able to determine which improvements will give you the best return on your dollar and which might put you over the top when it comes time to sell.
If the improvements you want to make are for your own use, and you plan on staying in your home for the long-run, then go for it. If, on the other hand, you’re hoping to improve your home’s value, be careful. Remember:
Maintaining your home is far more important than upgrading it. That said, if you’ve kept up with the maintenance of your home and it needs cosmetic upgrades, we suggest making them.
The most expensive home in the neighbourhood often intimidates homebuyers.
If you have a question on the local Real Estate market, or should you spend money on a renovation of your home before you sell, or how to contact a Mortgage Broker, or any information about a local area, just call Matt Wineera on 0274 951 536 who is always on hand to answer your query. His advice is given freely and without obligation.
Work with Matt Wineera who lists and sells in the Tauranga, Mount Maunganui and Papamoa areas.
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Matt continually achieves great results for Home Owners through his negotiation skills and vast real estate experience, knowledge and expertise.
Matt is very passionate about real estate and loves being at the coal face.
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