Homeowners invest in improvements, thinking that it will increase the value of their property. You might be impressed with the renovations, but the potential buyer treats it otherwise.
There will be lots of information on the internet advising you “to do things this way or that way” that will make your head spin. Remodeling shows will flip a house for $30,000 and sell it for $100,000 profit. That’s for entertainment, a miracle rarely happens in real life.
A smart commercial property manager will tell you that it is about what the market wants and what they are willing to pay. You don’t have to look far, the answer might be right in your neighborhood. Walkthrough the houses that are for sale and be a copycat of their remodeling ideas. Avoid going overboard, a buyer won’t pay for over-improvements.
Well-thought-out renovations are wise investments and others allow a slight chance to pay off. If you want top dollars for your property to avoid these bad renovations.
Adding a Swimming Pool in the House
A swimming pool addition in your house is like purchasing a car once you have it you’ll never recover your investment when you sell it. Do it for pleasure and not for anything else.
However, there are instances when a pool is a wise investment. If you live in a high-end area in which a pool is common in every house, without one you’ll find it difficult to sell your place. Or you live in a place with endless sunshine like Hawaii. Or your lot area is big enough to take in a pool and a garden too. But there’s no assurance that you’ll get something from your investment.
A pool hardly increases a home’s value, at most by 7 percent. You have to consider the cost to construct one and also the maintenance cost, which isn’t rewarding to many homeowners.
Changes that Make Your Property Look Odd in the Neighborhood
Homeowners usually fall into the trap of staying focused on upgrades to suit their whims instead of considering whether the improvement has a resale value.
For instance, you want more space in the house, so you consider constructing another floor to accommodate more rooms. You may think that this will raise the value of your property. But if all the houses in your area are bungalows, your property will look odd. Buyers may not be eyeing additional space, they don’t want to pay more if the selling price of a house in the neighborhood is in the vicinity of $150,000. Consider the upgrade only if needed.
Real estate is not just about the current homeowner, but about every owner thereafter.
Upgrades Only in One Part of the House
The master bedroom looks sloppy from decades of frequent use and abuse, and you are desperate to make it appear flashy and trendy. An upgrade will not raise your resale value instead it will give a negative impact because it will look awkward if the other areas are not remodeled. Consider some house painting or repairs to go with your master bedroom renovation.
If you notice molds in your house examine the marks. If it appears deeper than the surface of the walls, hire the services of mold removal provider. If left unattended it will spread to the different parts of your house leaving unsightly spots and can adversely affect the health of the occupants.
Making Upgrades without Permits
Making upgrades without permits is like driving a car without a license when caught, you can get penalized for an infraction.
A city inspector might order the tearing down of a wall if it was determined that there were ordinances that were violated. Contractors are human and they err permits contain established rules and regulations that will guide them in remodeling. Insurance companies won’t cover any claims if the remodeling was done without any permit.
Fines may be imposed by city officials if the remodeling is illegal. The owner might end up with penalties ranging from three or four times the cost of remodeling.
Buyers verify with city officials to match the claimed house area with city records and look for permits if there was a renovation. If there are no permits the home appraiser will not include the upgrade and the property will cost less denying the buyer of a loan.