There is always something, some homeowner, wants to do to their house. Paint the walls, change the carpet, tear down a wall, new kitchen appliances, outdoor patio area and new landscaping, a full kitchen remodel, add a bathroom, and the list goes on. Are you doing things to your house that will make it more marketable in the real estate market, or that will make it more enjoyable for you and your family? Though there is more freedom in doing work for your usage and enjoyment, be smart about both motivations. It is inadvisable to not consider ROI, or return on investment.
Home-improvement can easily be a "two for one." You can have work done to your property that you will personally enjoy, AND serve as a return on your investment when it is time to sell. There is an impressive amount of insightful data out there. Though our tastes and trends change with time, a large part of the code on "home-improvement return on investment" has been cracked. So let's check it out.
According to the cost versus value 2017 report, there was only one thing that was worth more than its cost for home owners in 2016, manufactured stone veneer. You certainly see this a lot in Southern California. It is retrieving 113 percent of its cost. It isn't likely that it will drop below 100 percent of its recoupment value. So this is a no brainer if you're thinking of selling within the next two years. (Below: manufactured stone veneer plates)
Interestingly enough, attic insulation almost recoups 100 percent of its cost in Los Angeles, but jumps to 123 percent when we expand the data to include all of the United States Pacific region. You know why? Because it keeps the heat in. This does not apply necessarily to us in Southern California where our weather is the envy of the whole country, but there is something to glean from this data. Buyers want a lower cost of living, and they will pay for it handsomely. Smart home systems, the nest, drought tolerant landscaping, high-efficiency HVACs and water heater's. It is in our cultures consciousness to be energy-efficient now, and nowadays with that technology being considerably more affordable, it boosts your properties value and marketability well into the 21st-century. Plus, these are things you can enjoy the benefits of as homeowners now. The Cost vs. Value 2017 report.
Southern California is one of the United States premium real estate markets. Unfortunately far too many Americans are priced out of the market. So for homeowners not in the Los Angeles luxury market, but would be in the luxury market just about anywhere else in this country, the purpose of home-improvement is different. Buyers want to assume the basic systems to be sound and working. Maintenance and repair work can chew up a lot of cash quickly. Defects in a property that can be readily be seen by buyers can sap the confidence that your property is a good investment. If there any structural issues, termite damage, leaking roof, etc, these are to be addressed if the resources are available. For properties with more than one repair issue, consulting with both a realtor and a contractor is highly advisable. As a realtor, I can better advise which repair job has more value in the market.
If you are planning to stay in your home for some time to come, any work you do will inherently be more geared toward your personal enjoyment. In the luxury market it seems all new construction has plans for home theaters. Wine cellars, massage and yoga rooms are also high demand in the luxury market. So putting in one of these you can see a large recoupment when it comes time to sell. What can be an equal cost of work but more practical and necessary may be something like adding an extra bathroom. If you have a 3 bedroom home and 1 bathroom that can be inconvenient. More than 3 bedrooms? Forget about it, your money is best spent adding another bathroom. Your home will offer a better quality of life for you and your family and the prospective buyers when you go to market to sell. Everyone favorite homes and garden tv station talks about these upgrades also, here.
If you are looking to have some work done to your home, Linda Vista Life has a list of vetted, quality, yelp and home advisor reviewed, local contractors on our site, here.
If you have any questions or want follow up information, or a Home Improvement consultation, I can be contacted via phone, text, or email.
