I am your luxury home specialist.
Making the most of your home improvement investments can be tricky, subjective, and sometimes - expensive. As a real estate professional, I’m often asked by potential sellers to price homes higher than market value based on the improvements that owners have made to the house. Unfortunately, I have to help sellers see that not all improvements are the same in terms of reaping a return. Why? In the eyes of prospective buyers - value can be all a matter of taste. Every year, we look to Remodeling Magazine to spotlight the best renovations for the money, and every year there are some tried and true favorites, and sometimes a few surprises.
Steel Entry Door Replacement Job Cost: $1,137 Resale Value: $974 Cost Recouped: 85.6%
Garage Door Replacement Job Cost: $1,496 Resale Value: $1,132 Cost Recouped: 75.7%
Wooden Window Replacement Job Cost: $10,708 Resale Value: $7,852 Cost Recouped: 73.3%
Vinyl Siding Replacement Job Cost: $11,192 Resale Value: $8,154 Cost Recouped: 72.9%
Basement Remodel Job Cost: $61,303 Resale Value: $43,095 Cost Recouped: 70.3% Wood
Deck Addition Job Cost: $9,327 Resale Value: $7,213 Cost Recouped: 77.3%
Minor Kitchen Remodel Job Cost: $18,527 Resale Value: $13,977 Cost Recouped: 75.4%
Attic Bedroom Addition Job Cost: $47,919 Resale Value: $34,916 Cost Recouped: 72.9%
Vinyl Window Replacement Job Cost: $9,770 Resale Value: $6,961 Cost Recouped: 71.2%
Major Kitchen Remodel Job Cost: $53,931 Resale Value: $37,139 Cost Recouped: 68.9%
If your property is now listed with a REALTOR® or Broker, please disregard this offer, as it is not our intention to solicit the offerings of other REALTORS® or Brokers. The information contained herein is deemed reliable but is not guaranteed. ©ProspectsPLUS!, Inc. www.prospectsplus.com
These project values are based on a national average. What’s interesting to see is how home improvement values break down even further on a regional level. Thinking of making improvements? Use their handy calculator today at http://www.remodeling.hw.net/cost-vs-value
3 COMMON MYTHS ABOUT THINGS THAT IMPACT A HOME'S VALUE
1. Dead people drag down values
“Although living near a cemetery doesn’t automatically affect the home’s price, it does have the potential to drive down home prices,” says an unnamed writer at a site that promises to be “your trusted source of information on real estate market news, trends, and advice.”
The article was updated in January of this year and still contains this erroneous information.
A 2013 study by Redfin found that “Homes Near Cemeteries Sell for More.” According to Christin Camacho on Redfin’s blog, “. . . on average, homes near cemeteries are slightly smaller, but sell for more per square foot.”
Those closest to the graveyard (within 500 feet) sold for an average $162 per square foot, while those “located more than 500 yards away sold for $145 per square foot.”
2.The NFL effect
It’s easy to assume that property values will increase when a NFL team (or any professional sports team) takes up residence in your town. Especially when the real estate community dangles the team’s move as incentive to homebuyers.
The most recent example of this is Las Vegas as the new home to not only the Raiders but a brand-new professional hockey team, the Golden Knights.
Brokers and agents were all over the local news, wringing their hands in glee at how much home values were poised to rise because of pro sports coming to town. This, despite various research studies finding that, overall, the stadiums just don’t correlate to a rise in property value.
In fact, Trulia’s study concluded that “New stadiums built in the last decade, by and large, have failed to lift the fortunes of nearby neighborhoods.”
They looked at homes within a 2-mile radius of pro football stadiums across the U.S. Earlier studies by others came to the same conclusion.
Despite this, agents continue to claim otherwise, with one going so far as to say, on his website, that “housing prices are expected to go up considerably once Las Vegas finishes construction of its stadium.”
Don’t buy into the hype. It’s simply untrue.
3.Your pets are gonna cost you
I dare you to find (on an agent’s website) an article about preparing the home for the market that doesn’t warn people about how many homebuyers won’t buy a home that has pets.
“If you truly want to get top dollar for your house, pay attention to how much you might lose with a dog or cat in residence,” cautions Elizabeth Weintraub at TheBalance.com.
“Like other forms of home staging, removing extra pet clutter is an important consideration when you are selling your property,” suggests Bill Gassett on his website, MaxRealEstateExposure.com.
At one time, this was excellent advice. But time marches on, people’s tastes change, and to give 1990s advice in the 21st century doesn’t make much sense.
If I were an agent, I would tell all of my listing clients to take all those dog toys and other paraphernalia and use them to stage the backyard. Why?
“Pet owners make up 80 percent of recent home buyers,” according to research from Realtor.com®, released last August.
Three-quarters of these buyers also claim that they would “would pass on an otherwise-perfect home if it wasn’t right for their animals.”
Ask to prioritize the features they were looking for in a dog-friendly home:
- Large yard
- Any outdoor space
- Large square footage
- Dog run
- Dog-proof or “sturdy” flooring
- Close proximity to outdoor spaces
If you have a listing that ticks any of those boxes, be sure to let buyers’ agents know. In fact, why not hold a dog-friendly open house, where buyers can bring their pooches to let them try out the backyard?
Just a thought.
The bottom line is that if 80 percent of buyers are pet owners, we think it’s a safe bet that a little doggy smell isn’t going to negatively impact your listings.
In fact, if your listing has dog friendly features and it’s located in an area of homes whose agents told them to play down their pets’ existence, it may just be worth more.
Located in the Heart of Texas, Greater Waco and the surrounding communities enjoy great weather and wonderful recreational and sports venues. From Little League baseball and triathlons to popular hike-and-bike trails, dozens of sporting and recreational events take place each week in around Waco.
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