In my other life as a business start-up, how to appeal to Angels and VC's (Venture Capitalists) is a constant concern. VC's seem to be all about acronyms. ROI (Return On Investment) is a acronym/concept used by VC's to compare potential investments.
A recent NAR publication spoke to the "value added" for various home features, facilities and improvements. I applied the concept of ROI to home improvements.
As always, consult your Realtor first: an outdoor pool in Upstate New York (usable for only 3 months a year without an Al Gore, carbon-neutral heater) is worth a lot less than a pool in a place where you can use it for 9-12 months a year.
With the caveats:
- "One man's meat is another man's poison."
- "Location, Location, Location"
- "Let the Buyer and Seller beware"
- "It's only worth what someone's willing to pay for it."
- "Good is Good."
Here Goes:
- 24%: An Additional Full Bath
- 13%: A Garage
- 12%: Each Additional Fireplace
- 12%: Central Air Conditioning
- 9%: A Basement (Hardest to add)
- 8%: A Sitting Area In Master Bedroom
- 8%: An In ground Pool (An Above Ground Pool only adds the neighbors kids)
- 6%: 9 Foot Ceilings (Hard to add)
- 4%: An Additional Bedroom
- 3.3%: Additional 1000 sq ft.
- 2%: A Laundry in the Basement
- 2%: A Usable Attic
External Features:
- Stucco and Wood Exteriors sell for 9% more, and Brick sells for 4% more than vinyl and aluminum.
- A Slate or Wood Shake Roof adds value.
- A Patio, a Sprinkler System, a Paddock and a Tennis Court add most value
Internal Features:
- Most Added Value: A Family Room, a Dining Room, a Whirlpool, and a Security System
- Floors: Wood, Tile or a Combination add most
- Highest Value-Added Kitchen Features: Built-in Refrigerator, Kitchen Island and/or Double Oven.
In the short term for selling a home: staging a home'sexterior home's exterior and a home'sinterior home's interior, yield a bigger bang for your buck than any major home improvements.
Improvements should be done primarily for your own benefit, enjoyment and life style; and not for your home's value, saleability or selling price.
Your home's new owners may not share your preferences, appreciate your effort, or even like your work.
You can't argue taste. But you still can negotiate selling price.
Adapt Or Die! Happy Searching.
WebHomeUSAblog; The Blog of Real Estate Search Marketing
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