From the moment you take ownership of your house or condominium, it begins to depreciate, much like a car once you drive it off the lot. Whether you’re selling in three years or thirty, which home maintenance projects and home renovations will help you maintain and increase your home’s value and pay back when you sell?
As a Realtor®, I’ve helped clients buy a home and then helped them sell it years later, so I’ve had plenty of opportunity to observe which renovations have made them happiest and also pay back when they sell. Here are my suggestions.
Look at your home through the buyer’s eyes with every project you contemplate. Here’s an example. The 1980 steam heating system that was in the house when you bought it in 1995 runs beautifully, despite the rust that’s collected on it and the overflow pipe that has a slow drip. You’ve been living with the old boiler for years and your house is toasty warm. Should you bother upgrading it?
Yes. When a home inspector tells the average buyer that the heating system is old, the buyer is usually not experienced or knowledgeable enough to want to take a chance on it. Replace the heating system – you’ll get to enjoy it for a few years and it will still be shiny and new when you get ready to move on.
The key to intelligent upgrading is to do the home renovations that will encourage the buyer to perceive that your house is in overall good condition and will require minimal future maintenance. While you won’t recoup the full dollar amount of that bathroom renovation or new kitchen counter, these upgrades will contribute to a higher sale price by cancelling out smaller deficiencies.
Below is a list of the top 7 Cost vs. Value home improvements for the New England region, courtesy of Realtor® Magazine and Hometech Information Systems (www.hometechonline.com). All projects are in the “mid-range” category as far as materials and contractors:
- Steel entryway door: 85.5% cost recouped
- New garage door: 80.9%
- Vinyl siding: 78.7%
- Minor kitchen remodel: 75.5%
- Vinyl or wood windows: 73%, so unless your own aesthetics can’t abide vinyl, save your money and install vinyl.
- Wood deck: 72.7%; composite deck: 71.9% so again, think maintenance and durability and look into a high-quality composite.
- Adding a second story: 64.9%
These are not hard-and-fast rules. They are merely a guide to help you prioritize. Buyers today EXPECT a younger roof, replacement windows, a younger heating system and 100 amp electrical service, so these items, per se, will not increase your value but will give you a solid starting point. The key is to keep up with the small cosmetic , systems and energy-saving aspects of your home; enjoy these upgrades while you’re living there; have less to do when it’s time to sell and get the price you deserve for the home you’ve loved.