When contemplating a home improvement project it is important to understand the difference between improving the marketablity of your home versus actually increasing the value of your home.
While any improvement to your home inexpensive or expensive can increase the likelyhood of a faster sale, they do not necessarily increase the value of your home.
The actual value of your home is determined by an appraisal. The appraisal takes many things into consideration when determining the value of your home. Some important factors are condition, age, square footage, number of bedrooms and baths and location. Then he/she compares your home to other like properties in the surrounding area that have sold.
If you have a home that is outdated then chances are you will not receive full value for the home but even if you do, it might have to sit on the market much longer than if you made some simple improvements. If your interest on your payments are $1,000 dollars a month and it sits on the market 3 extra months then you have actually spent an extra 3K on that property to get it to sell. Sometimes it makes sense to look at this and maybe take 2 or 3K and spend on paiting and misc. updates to make the home sell much faster. A good local realtor can help you determine what is selling in your neighborhood and help with the decision of where to place the money for the updates. A simple painting on the interior will do wonders for a home. But don't loose sight of the curb appeal too. If a potential buyer doesn't like the look from the curbside, chances are they won't get out to look at the inside.
Some improvements that add value in the short term are: Adding square footage of living space such as additional bedroom, sunroom, playroom. Adding on a garage or deck will also increase your homes value.
Some of the best additions for adding value to a home are a second bathroom and energy efficent windows. Before you do any home construction project remember to check any local building codes and aquire the proper permits. Additions and modifications done to a home without a permit can cause trouble if you decide to sell your home at a later date.
Don't understimate the value of proper landscaping and cleaning when showing or appraising a home. A well manicured lawn, healthy and well laid out trees & plants, fresh paint, gleaming floors, and clean exteriors go a long way toward boosting the marketability and perceived value of a property.
If you or friends of yours are capable, it is best to do the labor yourself on improvements, and taking the extra time to do that. In the end, your profit for the improvements will be far greater.
Sometimes, you won't reap a dollar-for-dollar reward for your money invested in home improvements. For instance, installing new carpeting, or painting the walls is usually considered "routine maintenance", and therefore won't have much effect on your home's value. It could, however, help you sell the home faster.
Updating your kitchen can add a lot of value.
