Home Improvements That Don’t Increase Your Equity
Homeowners looking to increase their property values or add to their home's equity often choose to remodel as a way to increase investment values. Contrary to popular belief, most hope improvement; with the exception of steel doors, does little to increase the resale value of your property.
Quality Home Improvements
Upgrading your home's door has the potential to increase the value when you sell your home. If your door is made of steel, it will cost less to purchase and install but add twice the value to your home. Fiberglass doors on the other hand, usually are chosen for their ornate look. They tend to be more on the costly side in terms of the purchase price and installation cost. Since they only gin back about half of their cost, installing one to increase the value of your home isn’t a wise choice. Regardless of which one you choose, your old doors and construction debris should be placed in a small dumpster to prevent accidents during your remodeling project.
Most upgrades increase the aesthetic value but do little for the resale value of your home. Painting your exterior, getting rid of outdated elements, or simply filling up a dumpster with yard junk will increase the curb appeal but not the value. Adding rooms, upgrading with costly fixtures and custom wall treatments are just a few more additions homeowners make in the hope of raising the value of the home.
During the peak of the housing boom, just about every remodeling project helped homeowners to recoup the money spent during renovation, but now entering slow season, new home buyers are less interested in glossy aesthetics and are more concerned with real value. Instead of renting a large dumpster and tearing out everything in sight, upgrades to need be selected with care. This change in buyer attitude has led to an alarming decrease in homeowner’s ability to recoup their renovation cost.
Save on Essentials
If you had plans to start a high-end renovation to your home in the hopes of increasing your equity, you would be better off waiting for peak season. The larger projects are the ones that suffer the most during slow season. If you already started your large-scale renovation project, consider cutting back on the amount you spend on materials, disposal, and premium materials. For example, if you planned to install new kitchen counters, instead of granite or marble, opt for Formica or a less costly stone. If you plan on hiring a junk hauling company to cart away your waste, opt for a large dumpster rental instead. You will still benefit from the upgrade, but you will be in a better financial position by not overspending.
Some other key points to consider when you remodel are that your personal tastes don’t always reflect that of potential buyers. If you are renovating your home but don’t plan to put it on the market for several years, then highly custom options won’t affect you very much. If you are planning to put your home on the market, then your styles choice should be neutral to make the home appealing to potential buyers. Consumers in the market to buy a new home don’t want to pay extra for changes you made that they don’t like.
Some other home improvements that only recoup about half of their cost are:
· Sun Room Additions
· Home Office Remodeling
· Kitchen Makeovers
· Deck Expansions
· New Pool