Best Value Home Improvements

I have been working in the Raleigh real estate market as a Realtor for over 11 years now and one thing that remains constant is that no one knows everything and there is always room for improvement and growth.  As the industry continues to evolve, we have to as well.  I recently was invited to attend an event called “Ask the Appraiser” where about 20 real estate professionals got to sit down with a local real estate appraiser and pick their brain on everything from how they select comps for appraisals to tricks for where to find the best data for pricing homes.  One of the topics that we hit on during our time together was the fact that some improvements a homeowner makes brings more value to the home than others and there are even some things that an owner may spend large amounts of money on that don’t bring any “appraised” value at all.

It may not be a shock to you that the 2 main areas/rooms a homeowner can spend money on improving their home and get the most “bang for their buck” are in the kitchen and bathrooms.  Updated kitchens and bathrooms will bring you the most return on your investment as a homeowner.  You are much more likely to attract more interest in your home when buyers don’t see these areas as projects for themselves.  The perceived value of an updated bathroom can be much more than the actual expense and the same goes for the kitchen.

Another emphasis that the appraiser we talked to mentioned for improvements that carry weight on value of the home is the age of the roof and the HVAC systems.  A roof is probably the most expensive single component on a home that a homeowner at some point will have to replace.  Appraisers when comparing a subject home with an older roof (15+ years) to that of a similar home with a newer roof (less than 10 years) can end up making a fairly large adjustment in home value.  It has been about 5 years since I had my roof replaced and for my modest 2100 sqft home, I paid around $10,000 for a new roof with 30 yr architectural shingles in 2017.

HVAC systems are very much in the same line.  Behind the roof, the HVAC may be the next most expensive needed improvement on a home.  Depending on the system and the size, they can run from $5000 - $10,000 per unit.

You want to know where not to spend your money and expect a nice value return on investment??  Swimming Pools!!  Pools should be purchased for the current homeowners benefit and use but not seen as an investment in the home.  Homeowners can spend $60,000+ on an inground pool and may only get $10,000-$15,000 worth of value in the eyes of an appraiser.  They are definitely selling features and very well may cause a buyer to pick that home with the pool over another home without a pool; however, the cost of the pool in no way translates to additional value on the home.  It can also be the reason a buyer chooses not to purchase that home as it can be seen as an expense and an upkeep item.

In my experience, I have seen many homeowners do projects to their home in preparation for getting it ready for market and prior to speaking to a real estate professional and getting their opinion.  They often spend money on things that would have been better spent/invested somewhere else.  If you are going to spend money on your home, spend it in the kitchen and bathrooms.  Better yet, before taking on any projects to prepare your home for the market, call your trusted real estate professional and get their insight and expertise in guiding you along the way.

Our team at the Kima Real Estate Group is here to help you every step of the way.

Give us a call today and let us show you what it means to be a part of the family.  919-300-5421