Here is a great article about upgrades to your house that won't sell it. Take a look!
If
you remodel your house because you plan to live in it forever, then do
whatever you want. But if you plan to remodel to help your resale value,
beware of these projects.
Homeowners
upgrade their homes for two reasons: They always dreamed of having a
walk-in shower, or they think remodeling will boost their home’s value
when it comes time to sell.
While the emotional value a remodeling project adds to a home usually pays off, unfortunately the monetary value rarely does.
Let’s
face it, you’re not always going to recoup the money you spent on a
remodeling project when it comes time to sell. Check out these examples
to get an idea of what you
shouldn’t do before you sell…
1. Adding a new facade to the exterior of your home
I
live in a historic neighborhood comprising mostly of
turn-of-the-century Craftsman Bungalows. A few years ago, adding a brick
front over the original wood became all the rage in my neighborhood.
Now it just looks out of place in the area. Last month, three houses
went up for sale on my street – two with the brick facade and one with
the original wood. The wood house sold right away while the brick fronts
are still sitting there.
I’m not saying that was the reason why
one house sold and the others didn’t, but spending the extra money sure
didn’t seem to help. According to
MSN, homes that stick out – like brick facades nestled among wood bungalows - won’t do anything for their value.
Alternative:
While you should update the exterior of your home before you sell,
stick with the original plans. For example, replacing weathered siding
with the higher-end fiber-cement siding returned an average of 78
percent of what homeowners paid, according to
Remodeling Magazine.
2. Putting in a pool
According to
SmartMoney,
adding an in-ground pool to your backyard won’t add any real value when
it comes time to sell. In fact, large outdoor projects don’t typically
appeal to a wide range of buyers. Most buyers would rather see an open
yard space than a koi pond or 16-seater hot tub.
Alternative:
Clean up the yard and add some basic landscaping to the front and back.
Having a nice yard gives your home curb appeal, and it’s one of the
cheaper remodeling projects you can do. In fact, a study by
HomeGain shows that the average landscaping job costs $540 and adds $1,932 to your home’s value.
3. Converting your attic to a home office
Converting
attic space into a useable room will appeal to buyers – if it’s the
right kind of room. Rooms like home offices only appeal to buyers who
consider working from home a plus. In fact,
HGTV reports that a home office remodel only recoups 60 to 73 percent of the cost on average.
Alternative:
Converting your attic space into something that appeals to everyone,
such as a bedroom. On average, homeowners saw up to a 90 percent return
on this project, according to HGTV.
4. Overhauling your entire kitchen
Kitchens
are the one room in the house that will appeal to the most buyers, so
you want it to be eye-catching. But, that doesn’t mean you need granite
counter tops, wood floors, and a double Viking oven to sell your house.
On average, homeowners spent $110,938 on an upscale kitchen remodel. But
the new kitchen only increased home values by $63,731 on average (or
about 57 percent),
according to MSNBC.
Alternative:
Do a smaller-scale kitchen remodel, and focus on the areas that are the
most outdated. As a comparison, MSNBC found that a smaller kitchen
remodel cost $19,588 on average but raised the home’s value by an
average 72 percent.
5. Installing solar panels
Green homes
are becoming more popular, so making your home more energy-efficient
will appeal to buyers. But the big greening projects are costly. For
example, The New York Times reports that while the cost of solar panels
has gone down by about 40 percent, one homeowner still paid a
whopping $77,000 to install a solar panel system. It would be nearly
impossible to recoup that investment in this housing market.
Alternative:
Upgrade your windows with energy-efficient models – you’ll make your
home more energy-efficient without the hefty price tag of those huge
greening projects. Double-pane energy-efficient windows provide better
insulation, which lowers utility bills – improvements that appeal to
every buyer. And if you buy Energy Star-rated windows, you’ll
qualify for a tax credit.
Questions to ask yourself
Before starting a remodeling project, consider these points…
1. Will this upgrade add value to my house?
If you’re remodeling because you plan to eventually sell your home, run
your ideas past a real estate agent or professional contractor. Not
every project automatically adds value to a house.
2. How will my house compare to other homes in my neighborhood? If you put your house on the market the same time as five of your neighbors, your house needs to stand out – but not
too
much. Most buyers won’t consider your house if it’s priced much higher
than others in the same area – even if your upgrades are worth the
higher value.
3. Does this upgrade appeal to a wide range of buyers?
If you’re going for a standard kitchen remodel, odds are it will appeal
to almost every buyer who comes through your house. But, if you’re
planning to break the mold with your home remodel, you might be wasting
your money. Run your idea past a few friends and see if they’d buy it.
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Article source: moneytalknews.com
NEW YORK, May 24, 2012 (BUSINESS WIRE) --
DIY Network, the go-to-destination for home improvement
television, and Vanilla Ice, 90s pop icon, home remodeler and
host of The
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two winners of the "Ice My House" contest will each receive a $30,000
room makeover courtesy of Vanilla Ice and his crew. In addition, the
transformation will be documented in two one-hour specials called, "VIP:
Ice My House," which will premiere in 2013.
