As a seller, you want to attract the best price for your home. To do so, you might consider spending money on repairs or upgrades before listing your property. Even minor fixes and careful staging can affect a home’s value and help you sell faster.
To maximize the value of your property, focus on the features of your home that are most desirable to potential buyers, including proximity to highways or award-winning school districts. The question of what adds value to a home can be answered by determining what buyers are willing to pay a higher price for in today’s real estate market. Here are some examples.
Find the Right Location for You
The location of a property can’t be changed, but this factor should always be considered before purchasing a home. Location can add a discernible value to real estate. From town to town, the same model home may sell for a significantly higher price based on a better school district, public safety or the availability of walkable towns or parks. For instance, the price of a beachfront property in Miami is typically much higher than a similar home or condo in another city or town.
So, how can you use the location of your property to add to its value? If location is a selling point for your home, don’t forget to include it in your real estate listing. Describe the walkability of your neighborhood if you’re close to shops or schools. Think about why you originally liked the location of your home and find ways to express this to buyers.
Choose Your Renovations & Upgrades Wisely
Renovations add value to a home, but sellers shouldn’t count on recouping 100 percent of their costs. Scott McGillivray, host of “Income Property,” says simple updates like new lighting, cabinet hardware or faucets can go a long way toward impressing buyers. McGillivray further adds that kitchens are always a focus of home shoppers. If your basic kitchen layout works, then think about upgrading other elements, such as the countertops, appliances or cabinets, to freshen up your design before selling.
Buy a Home That Fits Your Needs
Real estate prices are often measured based on square footage, and bigger homes tend to carry a larger value. Thus, any home improvement project that increases the usable living space of your home has the potential to yield a return when the time comes to sell. Finishing a basement and finishing an attic are two large projects that can add value to your property. In-law suites are also becoming more popular as the number of multigenerational households increases. When possible, expand the square footage of your home by bumping out your kitchen or adding an addition.
Eliminate Clutter & Stage for Mass Appeal
If you’re worried that larger improvements may simply not be worth the overall cost, small changes can also make a big difference in how much a buyer is willing to pay for your property. Removing clutter and staging your home, as well as improving landscaping to increase curb appeal, can make your home more attractive.
With any home improvement project, start by asking yourself what adds value to a home in terms of a buyer’s preferences. Ultimately, you may determine that it’s better to accept a lower purchase price rather than invest a large amount of time and money into a renovation project with no concrete assurance of a tangible return. If you’d like to get an idea of the current value of your home and how different upgrades affect prices in your area, start by checking the current listings on Owners.com.