Be careful not to over-improve your home, says one report
By Mark Schadenberg
The exorbitant cost of an in-ground pool combined with the four months
it’s feasible to enjoy it due to weather, means you should not install a pool?
Wrong.
However, be sure to know that your family’s enjoyment of the pool will
account for at least 70% of the pool’s value to the property. In other words,
you could easily spend $30,000 on an in-ground pool and when you factor up-keep
and maintenance, the overall increase to the value of your home will still be
less than $15,000.
My thought: Live in your 'family' home for a long time and enjoy your house and all its amenities, especially the pool.
Consumers know this over-improvement concept as they bring in a backhoe and build a pool house
to store the pump, chemicals, the floating skimmer, toys and floating reclining
chairs because they want a pool.
Anyway, below is a link to a story which reminds home owners that
over-improving a house is done solely for the enjoyment of the current owner.
If you own a 50-year-old house and plan on updating the kitchen – spend
$25,000, but avoid spending significantly more than that.
If you live in a neighbourhood with modest homes ranging in value
around $200,000, don’t over-improve your house too high as the market value for
the street-scape is certainly a factor in determining the value of your home.
I have also seen many properties where the entire backyard is ‘landscaped’
with ponds, a gazebo, three-tier deck, statue of a child with soccer ball, retaining walls, and ornamental trees.
We all love the outdoors, so limit the crowding of the yard as the next owner
may have small children who need space to kick a soccer ball.
The story below notes a warning about invisible improvements such as a
heat recovery system on the furnace. My best advice is to make sure all quality
enhancements to the house are advertised and promoted as they most certainly add value –
security system, central vac, water treatment systems, heated ceramic tile,
built-in speaker wiring, etc. I firmly believe the average consumer realizes
the true value of such items and will pay for them, but they are ‘invisible’ on
first impression or initial viewing of the house. Your Realtor's task is to remind other agents showing the home about all the 'added value enhancements'.
The flip side of some newer improvements, is that home buyers are
sometimes ‘blind’ to the new windows (pun intended), new roof, updated main
bathroom, newer flooring, and newer back deck, but are very quick to point out
an older furnace. No one can replace everything in a house, but the positives must out-weigh the negatives.
Your home will sell in a reasonable length of time based on the sum of
its parts and a proper asking price.
Link:
http://www.forbes.com/sites/investopedia/2013/05/19/6-things-you-think-add-value-to-your-home-but-really-dont/
Mark
Schadenberg, Sales Representative
Senior
Real Estate Specialist (SRES designation)
Royal
LePage Triland Realty
757 Dundas
St, Woodstock
www.wesellwoodstock.com
(519) 537-1553,
cell or text
Email:
mschadenberg@rogers.com
Twitter:
markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland
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