As winter progresses and thought and activity turn inward to the sanctuary I call home, reminders abound of all the little projects I could do to attractify the place. The list is long, from minor to-do's to major projects, all worthy aesthetically -- but in terms of increased value, well, there's the rub.
Experience has shown me that money invested in the wrong improvements can increase the difficulty later in selling your house. Sellers want a return on the cost of that new pool and often wish they'd remodeled the kitchen instead.
Wisely investing in improvements can significantly increase the value of your home when it comes time to sell it.
While geography plays a part, here are some general rules to guide you.
Adding a room is one of the more expensive improvements, but it can pay off. According to the National Association of Realtors® survey, 84 percent of the cost is recouped when the house is sold. The design and execution must be seamless, however, in order to pay off at the settlement table.
A common renovation idea in our area is converting an underused room, such as a basement, into a more functional and livable space. Caution needs to be exercised since it's possible you might not get all your money back. The survey notes that on average you'll get back about 69 percent if you refinish your basement and 75 percent if you convert an attic into a bedroom.
Remodeling a kitchen or bathroom also provides a nice return on your investment, which according to the analysis provide returns of 88 percent and 82 percent, respectively.
This is an excellent time of year to start planning for improvements to your house's outside and exterior. Improving your yard by making your property more appealing to the eye is always a good idea. But don't go overboard and expect to recoup your investment in an $10,000 backyard garden. A well-planned and inexpensive landscaping project can improve your resale value without turning your home into Versailles.
While new decks can make your leisure activities more pleasant, you really should exercise caution, since only about half of their cost is recoverable when its comes time to sell.
Many homeowners believe that the addition of a pool would significantly improve the value of a home, but as it turns out it's one of the least attractive options for a home. A pool often limits the number of prospective buyers who will want to tour your home. It's a good idea to consult your Realtor, who can assist you in examining the tastes and trends in your area and decide whether it's a good idea.
If you've ever traded in your car, you have probably cleaned it, fixed the dents and made sure the tires are good prior to asking the dealer how much he'll give you for it. The same holds true when it comes to your home. Painting the exterior is almost a pre-requisite to selling and is one of the most economical ways to improve the house's curb appeal.
The overriding thought to keep in mind is: Don't leave too much of your own lifestyle by over-customizing your house. That's perhaps the biggest error people make when it comes to improvements. If you want to eat food prepared in a Maisonette kitchen, you're better off making a restaurant reservation than you are trying to recreate it in your home.
As you consider your improvements, try to make decisions based on what will appeal to the most buyers when the time comes to sell.
STEVEN J. LOWENSTEIN, a native of Cincinnati, is a Realtor with Coletta & Associates Realtors. He's a graduate of the University of Cincinnati and holds a Master's degree from North Texas State University.
