Today's tip comes from an appraiser with 25 years of experience.
Increase your home's value and marketability! But only if it pays.
According to Jim Dougherty from James Dougherty Appraisers, "Everyone understands that if they install a new kitchen or bath, their home value will increase. But will the increased value cover or exceed the cost of the new improvement? Typically, the answer is no. Major renovations should only be completed if the homeowner plans to stay in the house for at least four years, so that they can capture the benefit/enjoyment of the upgrade. If a home has a serious defect or functional inadequacy (very old inadequate kitchen, very old inadequate bath, leaking roof, old, inadequate heater such as a coal conversion or gravity system, etc), the homeowner may want to replace that component as it will significantly increase their home’s marketability and they may even increase the value to the point that the cost to cure was offset." Some of Dougherty's tips on how to increase the value of the home?
1. Fix the flooring. "Old, worn, soiled, or outdated flooring is a real turn off in the marketplace and a signal to a buyer that the seller may not have taken good care of the property. Often, installing new modest flooring will increase the value above the cost of the new flooring install. There are many flooring outfits, including Home Depot, that will do the install interest-free for six months."
2. Paint it yourself! "Just like beat floors, when a home has dirty walls, ceilings, and millwork, it is a turn off and a signal to a buyer that the seller did not take care of the property. Nothing has a higher cost benefit than fresh paint, assuming it is done well and completed by the homeowner. While a professional painter no doubt will do a better job than most homeowners, they will also eat up the accrued value increase."
3. Listen to us! "Lastly, people, you need to listen and heed the advice of people like Stephanie and Chris. When they ask you to tighten the hinges on some cabinets, re-paint a room, plane a door, remove clutter, etc, etc, etc, do it. In order to maximize your sale price, you need as few defects as possible."
Visit James Dougherty Appraisers for more information.
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