There’s nothing wrong with wanting to perform home improvement projects before you put your home on the market. In fact, some fixes are mandatory.

When you’re considering major renovations, however, you need to be careful that you don’t over-improve the home for the neighborhood.

Getting Started

Before you hire anyone or hammer one nail, get in touch with us so we can calculate your home’s current market value. In the process, we’ll learn how much neighboring homes are worth; important information when you are considering renovation projects.

Appraisers have a lot of tools in their evaluation tool belt and two of them are the principles of progression and regression.

The latter says that a larger home surrounded by smaller homes will be devalued because of the market values of those small homes.

The principle of progression says the opposite: tiny homes surrounded by big homes benefit from the value of surrounding homes.

So, the watchword when contemplating your projects is don’t “over-improve.” Don’t create the best home on the block, thinking you’ll get a return on your renovation investment. You probably won’t.

Here are some tips on how to avoid over-improving your home:

The Next Step

The next step is to determine how much the project costs and how much value, if any, it will add to the home. This will let you know if the project is cost effective.

For instance, suppose your home is worth $390,500 (the average U.S. home price currently) and you decide to do a minor kitchen remodel.

The project’s price comes in at $26,214 (the national average for a mid-range kitchen remodel). The resale value of this project is $ $18,927, meaning you will realize a 72.2 percent return on your investment when you sell the home.

If you are remodeling your kitchen for your own benefit, then the fact that the ROI is on the low-ish side may not bother you.

If you want to perform the project for an increase in home value, however, you may want to rethink the idea.

Remember as well that if the return is higher than the local market will bear, it doesn’t make sense to make the improvement to a house you’ll be selling.

The highest ROI you’ll find when it comes to replacements and remodeling is a garage door replacement, according to according to the Remodeling 2020 Cost vs. Value Report (www.costvsvalue.com). The average cost nationwide for the project is $3,907 and the ROI is $3,663 (93.8%).

Think carefully before performing a remodel in the hopes of raising your home’s value. Consider the following:

  • Is it necessary? Can the current kitchen, bathroom or whatever be cosmetically updated?
  • If a project increases your home’s value, is the new value the highest in the neighborhood?

To avoid wasting money by over-improving your house, choose your projects carefully and learn the maximum potential sales price you’ll realize from the performing the improvement.

We’re happy to help you crunch the numbers so feel free to reach out.

 

As a Coldwell Banker affiliated agent, I have the tools and resources to help you:

  • Set the right price for your home
  • Locate qualified prospective buyers
  • Shorten the amount of time your home is on the market
  • Sell your home for the highest possible price

Don’t go it alone. Leave the sale and marketing of your home to to the Expert Team at www.homesinSDCounty.com and achieve the results you deserve. Give us a call today so we can get started.


If You Need to make improvements, make repairs and update your home before you sell, but don’t want to pay upfront costs Learn about RealVitalize a Coldwell Banker program provides home sellers with Repairs, updates and home improvement resources to prep your home for sale, and Highlighting Your Home’s Best Features for Sale – prior to or during the home listing period with no up-front out of pocket costs or hidden costs or interest fees. Seller pays back only the amount of services utilized at time of closing.

Buy or Sell – Our pledge is to make your Real Estate dreams come true

Real estate can be a complex and ever-changing industry, which is why the team at www.homesinsdcounty.com  is committed to staying informed and up-to-date on the latest market trends and innovative strategies. Whether you’re looking to buy your dream home or sell for top dollar, we can provide you with the knowledge, expertise, and support you need to achieve your goals.

Ready to buy or sell a property? Don’t navigate the maze alone – give us a call today and let us guide you every step of the way. Don’t wait, contact us today! 🏠👍

We are also here to help you with any questions or needs you may have in any City or State in the USA. We work with an Amazing Team of Agents throughout the USA and Globally – We Can connect you with a reliable member of our National network if you need one.

If you have friends, family or neighbors who are considering buying or selling a home, we at HomesinSDCounty would love to assist them. And please don’t hesitate to call me if there’s anything we can do for you!

Homes in San Diego – Find Local San Diego houses and Real Estate for Sale or Rent- Homes in San Diego County |Coldwell Banker Realty