What affects the value of your home? |
It's important to know the things that increase the value of your home and those that actually are negatives. After all, you don't want to try and convince your buyer that railroad running through the backyard is good because it provides open space. Here are 10 features that can add value to your home, and 10 that could be a hinderance:
1. An upgraded kitchen. Kitchens are essential, especially large kitchens with a lot of workspace. Buyers look for solid surface counters and high-quality flooring, such as wood, laminate, tile or stone. And they want mood lighting and newer appliances.
Even if it's not huge, the kitchen should have plenty of counter space and nothing that will have to be replaced soon. The cabinetry should be in good condition, and overall the kitchen has to be well-appointed and spacious enough to fit an average family. And buyers enjoy having a window over the sink.
Kitchens that open onto another room create more of a family center. A lot of families are looking for openness.
Renovations should be consistent with with the character of the community, not granite countertops in a subdivision where plastic laminate is common.
Will you sell faster? Yes. Will it sell for more? Not necessarily. If the appointments you've done are significantly higher quality that the rest of the neighborhood, buyers will have a hard time justifying a higher price.
2. Updated bathrooms. Buyers are looking for master baths with plenty of elbow room.
A big asset would be a spa or whirlpool tub. Some other features might be separate showers with steam and multiple jets, double sinks, and a private room for the toilet. Also make sure the plumbing and hot water heater are adequate. It would be a shame to see a $30,000 bathroom but nobody spent $15,000 to upgrade the pipes.
3. A large master suite. Couples are really excited about master suites. With that, they want to see a luxurious bathroom, retreat areas and walk-in closets.
4. Natural materials. People like natural materials such as stone, hardwood floors, and granite. In flooring -- especially kitchens or bathrooms -- look for ceramic tile or wood, rather than vinyls which can tear.
In the other parts of the house, wood or laminate products are more popular than wall-to-wall carpeting. But if you have carpet, it should be of good quality and well maintained so that a person doesn't walk in and think, 'I'm going to have to spend five grand right out of the gate.
5. Welcoming curb appeal. A good first impression on a home can add 5 to 10 percent to the value of the home. Homes in a neighborhood tend to vary about 10 percent from house to house, even if all other things are the same.
6. A light and bright house. People buy light and space. They don't walk into a really dark house and say, 'I love this dark home'.
7. Upgraded windows. People are looking at sun exposures and windows. In cold and hot weather alike, energy efficiency is very important. Insulated windows are always popular. Typically, they pay for themselves in five years. Skylights can also bring value.
8. Landscaping. Mature trees are and outdoor spaces with touches such as gardens and swings can be very appealing. A stark, unlandscaped yard just stands out as unappealing. Don't spend a fortune on plants, just keep it typical with the neighborhood.
9. Tons of storage. Both the sexes are impressed with an oversized garage, even though it tends to be "guy space." Some attic space and plenty of closets, as well as outdoor storage for bicycles, the lawn mower, and the snow blower are all advantages. Space is important. A nice feature in the master suite? His and hers walk-in closets.
10. Basement. If it's dry, it's a plus. But it's a negative if it smells musty or has water problems. A finished basement or attic, or a converted loft, adds more value.
Negative
Here are 10 things that could hurt your asking price:
1. A pool. Not everyone wants a pool, so forget what you may have heard. In most parts of the country it doesn't automatically raise the value of a home.
A swimming pool will limit your market when it's time to sell. The constant upkeep, the possible cracks, trouble with the equipment, and the liability is very high. For the people who want a pool, they're willing to pay for it. But there are a lot of people who simply don't want a pool.
Consider your location and home value. In the luxury market, not having a pool is a detraction. But buyers won't give you much more if you do have one.
2. Small garage. Unless you're living in a condominium or retirement community, most buyers will look for at least a 2-car garage. If you don't have a garage, or it's just a one-car garage, buyers will look for another property that can accommodate their family.
3. Unworkable floor plan. No master bathroom, small rooms and small bathrooms, an inconvenient floorplan or an overall layout that requires you to access bedrooms or bathrooms through other rooms, will detract value from your home.
4. Outdated appliances. Buyers avoid homes with an electrical or plumbing system incapable of handling modern conveniences. Even if they never look that deeply, their home inspector will tell them what appliances and other sysems are worn or broken.
5. Old or overly-personal decorating. 70's wallpaper, black walls in the teenagers rooms, or extensive doll collections can all keep a buyer from seeing the true character and architecture of a home. They won't be able to visualize themselves living in the space. Too much clutter can also kill a sale. Buyers should be able to see baseboards, closet space and also get a sense of the actual square footage.
6. A old roof. Roofs are expensive to replace, and a bad roof is usually enough to send buyers running. If your roof has problems, expect to take a hit in the price.
7. Bad location. Power lines, railroad tracks, freeways, and shopping marts at the back or side yards will make your home difficult to sell. On the flip side, never buy a house in a bad location to start with, no matter how much you love the price or the interior.
8. Deferred maintenance. If you've got an old roof, dirty paint, and stained carpets, it won't matter whether you've updated the kitchen. The buyer won't be able to see the plus points when they're distracted with deferred maintenance. If people think the house hasn't been taken care of, they will wonder what else they're not seeing.
9. Environmental hazards. Besides being a danger to human health, you must correct lead, mold or asbestos issues. Buyers will offer far less in price than what it would cost you to correct the problems.
10. A long list of needed improvements. It detracts if you have to do work. A house that you can move in today -- and it's livable -- is fine. Most buyers are scraping financially just to get in.
If you need ideas for getting your home ready to put on the market, ask for a copy of "The Sexy House". I'll email it to you right away!
