Remodeling is both exciting and scary. You’re ready for change, but you don’t want to hurt your home’s value. If you ever choose to sell, you don’t want to get hung up on a bad remodel.
Most homeowners assume all remodels and upgrades add significant value to the home, but it’s not always the case. Your remodel has the potential to add value to your home, but it’s also very easy for it to go the other way. Knowing how your remodel can make or break the value of your home isn’t just interesting information, it’s imperative.
The common misconception is any kitchen remodel will add value to the home. While most buyers want a beautifully updated kitchen, it’s still important that it match the aesthetics of the house. For example, a modern, contemporary home by the beach with an upgraded kitchen that’s sleek and trendy will add significant value to the home.
A home located in a historic district will want for a classically styled kitchen. Fixer-uppers will need their own touches too. Kitchens can always be made to match the theme of the house. Going outside the style of the rest of the house is a quick way to ensure your kitchen remodel detracts from the home rather than adds value.
More bedrooms usually means more money. An office is also a great way to add some value to a home. But, again, some remodels detract from the overall value of a home if you’re not careful. For instance, enlarging a small master bedroom to create a beautiful master suite is a great idea, but not if it means tearing down walls and taking over smaller bedrooms.
Taking a four-bedroom house with four small rooms and creating a two-bedroom house with a large master bathroom and walk-in closet may not add value, especially in a family neighborhood. Buyers may want a big, fancy master suite, but they will likely pass on it if they need more bedrooms. Don’t go overboard on one piece of the home while neglecting the rest.
Outdoor living is big everywhere you go, but it can be overdone. Adding too much landscaping and too many details might cost more than the return they provide. Even pools can be a risky upgrade these days with drought regulations plaguing California. Not to mention the added maintenance they add to a home.
Before you make any big remodeling decisions, consult your real estate agent. Don’t have one on hand? Reach out to a local Home Advantage First Team Real Estate agent to get to know what sells best in your area. With many agents trained and knowledgeable on the SchoolsFirst Home Advantage Rebate Program, we’ve got a specialist in your neighborhood that can help you with all your needs”
Content Provided Courtesy of FirstTeam Real Estate
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Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative, financial advisor, or BALANCE counselor who can help tailor a solution for you.