It’s that time of year again. The time when homeowners look to increase the value of their home through various projects. Putting in a garden, building a deck or putting in a concrete patio or other activities are part of adding value to your home.
However, when it comes to increasing your home value, there is a lot of misinformation out there. Adding a room isn’t necessarily a guarantee that the property will be sold at a much higher cost. Investing in a new paint job isn’t necessarily going to increase the property’s value. These things are often touted to homeowners who are looking for ways to improve the value of their homes. Here are some common myths about the value of your home.
Common myths about residential property value
Pour money in, and the appraised value will go up. All upgrades to the property aren’t created equal. Homeowners who make the mistake of performing home improvements before assessing the value of the upgrade can be disappointed when it is time to sell the property. People will often feel disillusioned if they have invested tons of money into the property only to see a modest increase in the overall value of the property.
You always make money when you sell. Real estate does appreciate more often than not. A recent report published by The National Association of Realtors revealed that home prices dropped in 23 markets in 2017. While selling a home tends to work in the homeowner’s favor, a homeowner can never assume that the property’s value will increase.
List the balance owed on your mortgage as the listing price. You may want to recoup your costs, but the amount may not be feasible when compared to homes in your area. Your rate may not make sense given the market conditions in your region. You may want to minimize your losses, and you may have invested a lot in upgrades, but you may not be able to get the asking price desired.
Pick an arbitrarily high number, and drop it if it doesn’t work out. The property tends to attract the most interest when it is first listed. Within the first two weeks of being listed, it generates the most activity and inquiries. The pricing tends to drop in the following weeks. The majority of the offers made in the first two weeks will be lower than what’s listed, so it makes sense to consider the listing price carefully.
Home automation and value
While you may have been told to consider making upgrades to your property before selling it, you may be unsure of which updates translate into dollars when selling the home. In a recent survey, 90 percent of respondents indicated that a smart-enabled home with security features would motivate a person to buy a property. A quality system is preferable to a less advanced system that won’t add as much value to the property. Adding home automation increases the value of your home.
A range of different variables determines the value of your home. Upgrades alone aren’t enough to guarantee the value of your property if you chose to sell it for a higher value. You can prepare for the changes in market conditions by following the trends. You can also research the value of any upgrades made to the home before you invest in any repairs.