101 Ways to Increase the Real Estate Market Value of Your Home Continued…High
RIO Bonus Tips
Bonus Tips for High Return on Investment
When it comes to realizing a high return on investment (ROI), quality
of work and professional results are of prime importance. Other
important factors include functional layouts and increased or improved
livable space.
A key factor when considering what types of remodeling are more
important than others is whether or not the project would boost
the appraisal value of the home. Certain elements of a house are
more important than others when appraising the home’s worth.
Number of bedrooms, whether or not there is a fireplace, number
of bathrooms, whether or not there is a formal dining room and type
of house construction material are all elements that may affect
the appraised worth of your home. Whereas wall color, whether or
not the basement is finished off, and brand of appliances generally
do not.
When considering what type of home improvement project might represent
your best investment return consider the following:
- How will the project impact your home’s appraised value?
- How strong is the resale market in your area?
- What is the typical neighborhood norm?
- How long do you plan on living in your home after project completion?
- What DIY skills do you have that would help save on home improvement
remodeling costs and thereby increase your ROI?
Another thing to consider is that return on investment is only
greater for DIY projects with professional quality workmanship.
Although options are innumerable, a great home improvement tip
is to put focus on those that will net the best investment return
when you are ready to sell.
Various Types of Home Remodeling Projects
Some projects fall under the category of “home maintenance
repair.” These must be considered first in order to preserve
the integrity of your home; to maintain a solid structure with reliable
systems.
Things such as roof repair, exterior painting, furnace and major
appliance maintenance, electrical maintenance and upgrades, and
window repair and upgrades all represent these type home maintenance
needs.
“Lifestyle projects” are those that serve a single
purpose. Examples of lifestyle projects include an indoor outdoor
pool, home theater, a safe room or panic room, and a home wine cellar.
Elements that are perhaps of prime importance to the homeowner,
but not necessarily to a buyer. Although alluring, these type projects
often represent a poor expected investment return for the person
preparing to sell their home.
“Neighborhood norm projects” are those considered standard
for that neighborhood. Aspects of a home that buyers would normally
expect for that area. Elements that if omitted, might reduce the
value of the home or make it harder to sell.
For instance, a two bedroom house in a neighborhood comprised mostly
of 3 bedroom homes. Or, a house with only one bathroom, in an area
where most other houses have at least two. If the home owner were
to add at least another ½ bathroom, the house would almost
certainly sell more quickly, with a high ROI realized.
Many other types of exterior and interior remodeling projects are
optional. Even projects that are purely cosmetic can yield a high
return on investment ratio.
Ways to Increase the Market Value of Your Home and Increase Your
Chances of Making a Quick Sale:
- For the most part, keep room décor subtle and neutral;
use select accessories to add color and pizzazz. The exceptions
are dens and dining rooms – which can have more vibrant
colors and more accessories
- Keep room décor uncluttered, with clean lines.
- When updating the bathroom, consider this; cast iron bathtubs
can cost over $600. Steel tubs that look like cast iron and function
about the same can cost less than $300.
- Installing a stone counter can increase the value of your home.
If you want to save on the expense, install natural stone cut
into 10 to 12-inch squares. Use grout in between tiles as you
would when installing ceramic tiles. In addition to costing less
than solid stone, individual squares can be replaced when damaged
– instead of the whole counter.
- For the most part, moderate bathroom and kitchen renovations
reap a higher ROI than more upscale remodels. The exception being
if you live in an upscale neighborhood.
- When showing your home to a potential buyer, make sure room
temperature is comfortable and that the interior is free from
unpleasant odors. You want buyers to put focus on your home and
what amenities it offers – not on how hot it is or how bad
it smells.
- When selling your home within 5-years of making home renovations,
look into an adjustable rate loan; this could save you big bucks!
- Undertaking home remodeling projects late fall and early winter
can save you money. Project bids are usually more competitive
because contractors want to pick up extra work for holiday expenditures.
- Two remodeling projects with curb appeal that repeatedly reward
homeowners with high ROI and quicker sales are siding and windows.
Landscaping efforts also offer high returns – often more
than 100%.
- The return investment is usually greater when homeowners remain
in their homes 5 years or more after home renovations, at a time
when remodeling costs are higher. Unless, of course, renovations
followed a trend that has since become outdated.
- While homes with pools usually go down in value slower than
those without, installing a pool to enhance sale potential is
a poor investment; one with very low recoup potential.
- When you over improve it is difficult to recover investment
costs when selling; pay attention to your neighborhood norm. It
is possible to boost your home worth so high that it is no longer
marketable in the neighborhood in which you are living.
- De-cluttering your home makes it look more roomy and inviting.
It is a cost-free way to enhance sales potential, and can even
increase what buyers are willing to pay for it.
- A quick, effective way to increase evening curb appeal is to
add landscape lights, or a decorative street lamp.
- If your yard lacks interest, consider constructing a retaining
wall. Use railroad ties, bricks, or stones to construct a wall
with old-world charm. One that compliments landscape design and
the style of your home.
In addition to these high RIO bonus tips, read the following sections
on how to increase the real estate market value of your home:
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