Preston Group had a gorgeous real estate listing recently. This home has over 5,000 square feet, huge basement, and gourmet kitchen. However, it doesn’t have a pool. Did that fact made the home challenging to sell? I don’t think so- we heard just as many clients say, “It doesn’t have a pool?” as have said “Thank God it doesn’t have a pool!”. The lesson- what one buyer thinks is luxurious or valuable, another buy may find as a burden or unnecessary cost.
Here are a few suggestions- some rules to follow to make sure that you are living in your dream home, while choosing home improvements that will create return-on-investment.
IS IT YOU “FOREVER” HOME, OR YOUR “RIGHT NOW” HOME?
If you are planning on buying this home and staying there for 20 years, knock yourself out. If you want dark grey colored walls and a built-in climate controlled wine closet (like I do), and you will enjoy it for as long as you live in that home, that investment makes sense. However, if you plan to move out in three-to-seven years as the average home-buyer does, those home improvement investments might not make sense. In the three-to-seven year scenario, focus on upgrades that keep home desirable to as many (eventual) buyers as possible such as new carpeting or neutral colored fresh paint.
BIG FISH IN A SMALL POND
As temping as it may be to have the most beautifully improved home in the neighborhood, if you over improve your home it can scare potential buyers. Buyers want to know that there is room for their investment to grow. Buying a home that is over improved and priced at the top of the market for that neighborhood makes growth slow, if not potentially impossible. Strive to be the medium fish in the pond.
THE MILLION DOLLAR KITCHEN
You may have heard that you will get your best return-on-investment (ROI) when bathrooms and kitchens are improved. For the most part, that is true. But please, leave the million-dollar kitchen for the million-dollar home! All home improvements should be appropriate for the home’s size, style, and location. Investing in updated counter-tops, flooring, and fixtures that both match the home’s style and are reasonable priced are all great options.
THE ADD-ON
Thinking that expanding the master bathroom might help to sell your home? Maybe. Providing that the addition is appropriate and reasonably priced (see above), a larger master bathroom might just attract the perfect buyer. However, you will see diminishing returns if; your addition takes up too much space on your home lot, significantly changing the square footage of your home (Big Fish), or comes at the cost of other useful space such as a bedroom. You also want to avoid drastically changing the curb aesthetics of the home, causing it to no longer appear appropriate for the neighborhood.
Overall; focus on pre-listing home projects that improve value for the next buyer while keeping your cost as low as possible. If you have any questions call me, Shawn M. Preston (702.350.2289) or send me an email. I can help you walk through the spider web of pre-listing home improvement decisions. After all, it is our mutual goal to improve your home to attract the highest paying buyer, quickly!
This article also gives you more great tips on improving your home before selling.