When thinking about prepping your home for the market, there are a few standard updates and areas of the home that immediately come to mind, like the kitchen and bathrooms. However, there are other factors that contribute to the final resale value of your home. Additionally, some areas of your home that you believed would help increase its value, may actually hurt it, or not have as much of an impact as other areas you’ve neglected.
So, what are some of the main things that determine a home’s resale value?
Updates or renovations
Of course, updates and renovations improve the overall look and feel of your home, and because of this it’s easy to think that these upgrades will no doubt increase your home’s value. However, this may be incorrect and here’s why. If these updates are far too extravagant and “overvalued” for the area that the home is in, these updates may actually turn potential buyers off. Compare your home to other houses in the neighborhood and evaluate the actual location of the home prior to spending a ton of money on big renovations. Where a home is located (more on this later) plays a huge part in its resale value and often determines the maximum a home can go for. If you spend a large sum of money on home updates and overvalue your home for its area, chances are you will not be able to make this money back and will lose money instead.
It is pretty obvious that negative events like a previous house fire, water damage, or mold would have an impact on the value of your home. However, if the problem has been resolved many homeowners think that it will no longer affect them when it comes to selling, but that’s not true. Potential homebuyers are becoming increasingly concerned with these issues and are learning to ask. Additionally, depending on the damage or issues, the federal law may require these issues be disclosed. Even if the damages have been remedied, it leaves homebuyers feeling uneasy and like there will be hidden problems related to these issues down the line, especially when it comes to mold. Negative events can also include crimes committed on the property which will be public record.
General condition and/or age
The age of your home often plays less of a role in resale value than condition does. If your home is in excellent condition and is older, it has a better chance of selling, and at a higher cost, than a new home in horrible condition. Also, when a home reaches a certain age, it becomes “historical” and that can actually increase its resale value.
When you are considering and evaluating the condition of your home, this should encompass both the interior and the exterior. Some exterior areas of your home that can be easily overlooked but are very important, are your roof and your gutter system. These are important lines of defense in protecting your home. If a potential buyer notices that they have not been maintained properly they understand the dangers of this, as well as the cost associated with these fixes and/or the larger problems their ineffectiveness could have caused. Before even taking photos of your home for a listing, make sure these areas are updated, inspected and well maintained. You may be surprised how much your home’s curb appeal can increase from just updating a roof and/or your gutter system! You may even want to take your gutter update a step further and consider a specialty gutter material to increase this appeal even more. Also, gutter guards can be a great selling point for buyers because this means less gutter maintenance and cleanings for them.
Layout and size
Interestingly enough, the size of a home is playing a large part in a potential buyer’s decision making process, but it’s not for the reason you’d think. In recent years, a smaller home has become increasingly appealing to buyers. A larger house means more upkeep, more maintenance, and a less homey feel. The layout is what appeals to most more. Open concept is a huge selling point because it gives off the impression of a larger home without paying for, or maintaining more footage. Also, the number of bedrooms is very important, especially for families, or for those that are imaging starting a family. Did you know that a room is not actually considered a bedroom if it doesn’t have a closet? So, although you may think you are selling a three-bedroom home, if one of the “bedrooms” doesn’t have a closet it can only be listed as a two bedroom.
Location has always been, and probably always will be, one of the leading factors in determining resale value. School district, safety, and the sense of community within the area are three of the most sought after and analyzed features, when choosing a location to live. Also, transportation, parking, and traffic are important factors homebuyers will likely consider when coming to an open house.
If you are ready to sell your home and you have not yet considered any, or all of the items above, you may want to do so before listing. If your budget only allows for a few updates, consider wisely which ones will pay off the most! When it comes to condition and appearance of your home, updating or repairing your gutter system is one of the easiest, and most cost-effective ways to increase your home’s curb appeal, and in turn, its listing value. If you need a new gutter system or you are looking for a fresh update before putting your house on the market, call The Brothers today!