What areas of my home provide the most value?
We are asked all the time what parts of my home are considered most when providing value. Is it the pool, solar, a new roof? When it comes to increasing the value of your home, few renovations offer as much bang for your buck as upgrades to the kitchen and bathroom. These two areas are often considered the heart of the home, and prospective buyers pay close attention to their condition and features. Here's how investing in kitchen and bathroom upgrades can significantly boost the valuation of your home:
Modern, updated kitchens and bathrooms have a significant visual impact. Features such as granite countertops, stainless steel appliances, and sleek cabinetry can instantly elevate the overall look and feel of these spaces. Aesthetic upgrades create a positive first impression and make your home more appealing to potential buyers.
Functionality is key when it comes to kitchens and bathrooms. Upgrading outdated fixtures, such as faucets, sinks, and toilets, can improve efficiency and convenience. Functional upgrades enhance the usability of these spaces, making them more attractive to buyers.
FAIR WARNING: Not every dollar spent means it provides the same dollar in value. We hear all the time, I spent $15,000 on a new roof, $5,000 on a fence, $20,000 on a pool why do I not see that in the value. This is because you have to prove that the market says those items are worth that much. If you spend $20,000 on a swimming pool that dollar amount that was spent does not get included in your appraised value (sometimes.) The kicker here is that an appraisers job is to prove that the market reacts positively to whatever upgrades you have. If the market proves that when you sell a home with a pool it sells for $20,000 more than you can create that value. However, if put in a brand-new gated fence and the market shows no reaction to brand new gated fences, then that value you think you would have created has been lost.
Denzel said it best in Training Day, “It’s not what you know, it’s what you can prove.” When assigning value to upgrades it just comes down to what reaction it has on the marketplace that is provable. Notoriously, the easiest way of proving value in upgrades has come with kitchen and bathrooms.
When you are trying to bring value, understand where your marketplace is when you are thinking of buying or selling. Are most homes in your neighborhood remodeled or original? Does the demographic prefer homes with 3 bedrooms over 2? When assigning this value, be unbiased. Understand that your property is going to be viewed from an unbiased perspective and you need to think as that individual would. If you are not sure what your market is doing. Send over a message and we can collaborate with you and point you in the right direction.