When the time comes to make improvements to your rental property, you want to be sure that you’re choosing the right improvements. Is your goal to increase the value of your home so that you can increase the selling price, or are you hoping to increase the odds that your home will sell quickly and effectively? Knowing the difference between the two can help you make the right choice about home improvements before you put your home on the market.
Question #1: Is the improvement appropriate for your area?
Take a look at the area around your home. Adding an extra bedroom, for example, can help add square footage and value to your home. It can also make it easier to sell the home if you live in an area dominated by families and you have a small, one or two-bedroom home. On the other hand, adding on an extra room or two might not add value in an area filled with seniors or young families with only a single child. Take a look at property values in the area, too: you don’t want to substantially exceed the value of other homes around yours.
Question #2: Does the improvement genuinely add value?
Fixing up things that are wrong with the house, including updating outdated appliances, can add both substantial value and substantial sellability to your home. On the other hand, some improvements are more a matter of personal preference than value. Upgraded utilities, for example, probably won’t add value to your home. If your roof is on its last legs, you might be able to increase sellability by fixing it, but you might not improve its overall value. Carefully consider the benefits of each one before making changes to your home. Improvements that genuinely add value may include:
- Kitchen remodels
- Energy-efficient appliances
- Creating versatile spaces within the home
- Adding a deck
Make sure, before you get started, to calculate the cost of the changes versus the additional selling price you can expect to bring in. It may surprise you what additions, including a swimming pool, might actually cost more than you can make on them.
Question #3: What to buyers really want in your area?
Take a careful look at what buyers are looking for when they buy in your area. Improvements that add sellability might include things like:
- Improving curb appeal
- Updating appliances
- Adding a fresh coat of paint to make the house look its best
- Upgrading the bathroom
Take a look at the market and see what sells. Consider talking with a realtor to discover more about what potential buyers are really looking for. When you know what buyers are looking for, you can add those attributes to your home–and often, that can go a long way toward selling your house quickly and effectively.
Are you putting your house on the market? Before you sell, consider these key elements of how to upgrade your home–and how to potentially improve your selling price.