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Which home improvements give the best payback?
If you’re thinking about remodeling your kitchen, or finishing your basement, you probably want to get your investment back when you sell your home. But when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90% or more.Things like adding rooms or finishing basements tend to pay back the least.Finishing a basement usually returns less than 50%, so it’s not a project likely to show profit at selling time.
There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your area. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market.
The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you're smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood.
Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment.Flowers are a great way to add Curb Appeal inexpensively. While you're at it, don't forget The Back Yard.
The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:
Effective marketing is the key to selling your home quickly and getting the highest price. Aggressive, effective marketing of my Client's homes by every available medium is how I've become a top real estate agent in the Orlando area. It's my job to assure that you get as many qualified offers as possible, allowing you to extract the highest price the market will bear.
One of the most important elements of marketing your home effectively is setting the price right. Set the price too high, and you won't get any offers and your home will take too long to sell. Set it too low and you cheat yourself by not getting your home's full, fair value. As an expert in Winter Park area real estate, I analyze the market and set area home prices every single day. I'll work closely with you to assure that everything possible is done to get the highest price, in the time frame you need.
The condition and appearance of your home are also critical factors in getting the best price for your home. I'll personally walk through your home with you and advise you of what you can do to properly stage your home most effectively. Some areas are much more important and more likely to pay off than others! Often, the buyer is motivated by emotional responses as much or more than financial issues. There are usually things I can point out to you that are easy and inexpensive, yet go a long way toward triggering those "buy" emotions.
As your agent, I'll negotiate furiously on your behalf throughout the entire process to ensure that your best interests are protected. Real estate negotiations and contracts can be intimidating in their complexity. Most people have almost no experience in these negotiations. After all, how often do you buy or sell a new house? As a top real estate professional, getting you the best terms and prices in all negotiations is simply part of my job.#OrlandoRealEstate
David Welch Real Estate Optimist, Orlando Real Estate
There are a number of reasons why you should have an agent representing you in a new home purchase transaction. First, of all no matter how nice the new home sales person is, they are not representing you. They have a legal obligation to represent the interests of the builder/developer. Doesn't it just make sense to have a real estate professional representing your interests? The builder thinks it is important to have a professional representing them in the transaction. You should really do the same.
Your agent, while not a lawyer, can help you to understand the differences in the 'standard' contract and a builder's contract. They are not the same, and your agent should have the experience to know what questions to ask, and what those differences can cost you. Yes, I said 'cost you'. There are costs a seller customarily pays here in The Sunshine State, but the builder's contract often shifts those costs to the buyer's side of the ledger. While your agent may not be able to negotiate a change in those costs, at least you will go into the transaction more fully understanding your obligations and costs. I recently had a couple that decided not to purchase new, when they realized how much those extra expenses were going to cost them. We ended up finding a re-sale in the same neighborhood that was less than six months old, with a very motivated owner by the way. They were able to purchase the same model home with many of the same features and upgrades they liked without waiting to build.
There is another benefit to having an agent representing you in a new home transaction. You may only buy one house from that builder, but your agent may have sold many homes with that same builder. Recently, I represented a new home buyer purchasing a home that was completed just in time for the builder's year end financials. We arrived at the closing agent's office, and closed without any issues. Since it was the end of the builder's fiscal year, there were 24 other closings scheduled for that day, and roughly half of them had last minute issues creating delays for the buyers. Two families I met in the waiting room said they had moving trucks and movers (charging by the hour) waiting for them to close to move into their new home. When we left, they were still waiting to find out if they would be able to close that day or not. They did not have a real estate agent representing them. I cannot say that all the buyers experiencing delays that day had no agent, but part of my job was to make sure everything was ready to go beforehand. Builders do respect the role of the buyer's agent, and they want us to keep bringing buyers to their communities. That potential for many future sales, may just give your agent a bit more clout with the builder.
That is why it is so important to consider the location of the property carefully when making a purchasing decision. The more convenient the location is, the more marketable and likely more valuable it will be, now and in the future. When considering residential real estate, you should look at proximity to shopping, access to highways and schools. Also consider aesthetics and amenities associated with the location, like parks and lakes. When considering commercial real estate, access to roads, and convenience to potential customers are key considerations.A beautiful home in the middle of nowhere is likely far less valuable than an average home located in an A rated school district with convenient shopping and easy access to the expressway. Choosing a good location is not necessarily difficult, but it can easily be overlooked. #OrlandoRealEstate