Which Projects Add or Decrease Your Home’s Value?
This is the time of year that people are working on home projects inside and out, but some hoping that those projects are maybe going to improve the value of their home, but before you do it you should know if that renovation could also backfire, Anthony Lamacchia from Lamacchia Realty are here with some advice we’ve out lined some common things that people do to their homes and we want to talk about how it can increase or actually hurt when it comes time to resell so we have a full screen list we’re going to reach one the biggest one you want to talk about is swimming pools.
That one comes up the most especially this time of year people ask all the time my answer to any of these is this is your home, if you’re going to be staying in your home for many many years, who cares?
Make it the way you want yeah but if you’re going to sell in the next five years, or you may sell in the next five years you should stop and think before you do these things.
The swimming pool, why is this you know you got a nice big backyard, an inground pool, it would add the value but how can it hurt?
Well the times we see it hurt value when you have a regular size yard or small yard and the pool takes up the entire yard. That’s where we see it hurt because first time buyers coming in either they’re about to have children, or they have small children and they say where are the kids going to play?
Because usually there’s a separate fence, or there should be, so people tend to say well what are the kids going to do when we see it add value, or give the buyer desire to buy the house is when a nice big sprawling house with a big yard a section of the yard has the pool people love that but if the whole yard is taken up by the pool, that may hurt you when you want to sell.
And again bottom line if you’re staying more than 5 years and you want your swimming pool,
Get your pool!
Enjoy your pool life’s too short. The second thing is in-law apartments, it’s great when you have that attached in-law suite, you might have guests or elderly relatives living with you but when is this a bad idea?
Well I think if you need the help it’s never a bad idea I know my mother in law certainly helps very often, doesn’t live with us but the thing is you have to think about what space you’re giving up in order to put in the in-law. We’ve had some clients in the past who have been in a neighborhood with all 2 car garages, regular Colonials, I know some folks who eliminated a garage and put the in-law in there, worked for them they love it, but when you want to sell, you have to think: how many buyers want to buy a home with an in-law apartment? Not as many as there are buyers who just want to buy a regular home so you gotta think about that. And how many people want to buy without a 2 car garage? Even less. So that decreases the demand. The demand goes down the value can get hurt a little bit. So that’s something you have to think about.
And this goes on to another one on the list, switching rooms to accommodate what you want, maybe making a garage a game room or making a bedroom into an office. That can be very useful when you’re living there but when you’re selling it can be a detraction
Yeah let’s say you have a third floor and turn that into another room– that does nothing but help. But what we see sometimes is someone has a 3 bedroom house and one of the bedrooms is small, and then people knock a wall down and make that small bedroom into a master closet. Works for them, they love it, I say go ahead and do it but if you’re going to sell in the next 5 years, don’t do it because your home is going to do better marketing as a full 3 bedroom than saying a 2 bedroom but then saying one of the bedrooms has a huge master closet.
All right, outbuildings, this isn’t quite as big as the others like a shed or barns that are not kept up well, that can be an eyesore
But again, remember I used this as an example with the in-laws, buyers are out there who want to buy who want to buy a home with an in-law, same thing: how many buyers are out there who want a home with a barn? Think about it, how many friends you bump into that say I can’t wait to get my first house and to get a barn! It’s less often. Some people like it, someone handy who wants to fix it up or put cars in it or maybe in a rural area.
A specific buyer
Yes it’s a specific buyer but there are less specific buyers than a regular mainstream buyers but when you sell your home you want your home to marketed to as many people as possible, the mainstream buyers. So that’s what makes a difference.
The takeaway from all these points is the 5 year rule, if you’re staying for more than 5 years you might not want to worry but if you’re looking to flip in the next couple of years before you do any of these things to your home think about it.
Also the reason I say 5 years that gets you a lot of use because you could change it. We just had a couple who decided to make their 3rd floor into a bedroom they went through the permitting they did everything right they spent roughly $10,000 or $15,000 and they were able to get a return of $75,000 just by making a 3rd floor into a bedroom. So you can change things back. In that case they didn’t like when I mentioned the master closet that could be switched back to a bedroom, but you don’t want to switch it back after a year or 2 years, even 3 years after doing it. If it’s longer you don’t care as much.
Anthony Lamacchia thank you so much.
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