Regardless of whether or not you plan to sell anytime soon, it’s a good idea to keep a pulse on how much your home is worth relative to the market around it.
How do I determine what my home’s worth?
For your most accurate assessment of your home, it’s best to contact a Realtor that will conduct a comparative market analysis based on the local real estate market, as well as trends specific to your area and neighborhood.
What factors affect my home’s value?
In typical market conditions, home values tend to appreciate, granted you maintain it well. Here are some factors that can affect your home’s value one way or another:
- Market conditions, i.e., how much inventory is on the market at any given time
- Neighborhood condition and amenities
- Age and condition of your home
- How much your home sold for in the past
- Square footage of your home
- Your home’s proximity to good schools, shopping, city center, etc.
Which renovation projects help my home’s worth the most?
Before you swing the sledgehammer, it’s important to know the facts–because not all renovation projects are created equal. Read below to learn which home improvement projects yield the best return.
Curb appeal is like a first impression—there are no do-overs. And when it comes to maximizing your potential return on investment, enhancing your front door and garage door prove to be two of the best investments.
A new front door can refresh the overall look and feel of your house and won’t set you back too much. With costs typically hovering around $1,200, studies show you can expect to recoup about 98 percent of your investment when you sell. Update your front door for even cheaper than that by simply adding a fresh coat of paint or stain.
Likewise, replacing an outdated garage door can dramatically increase your home’s presentation and marketability. Considering garage doors are usually a fairly prominent feature on our homes, investing a little money goes a long way with this reno, and experts report you can expect to get back an average of 88 percent of your investment here.
Dubbed the best room of the house, it’s no surprise an updated, flowing kitchen with room for family to gather is at the top of buyers’ wish lists these days. Spending money revitalizing your kitchen can certainly pay off, if you do it wisely.
Experts say that a smart renovation budget for a kitchen should not exceed more than
10 – 15 percent of your home’s overall value, and you can expect to recover about 83 percent of your total cost when you sell. Keep future buyers in mind when picking out new color, surfaces, fixtures and cabinets to ensure your kitchen remodel will look up-to-date for many years to come.
Outdoor living spaces are quickly catching on– and with construction costs only a fraction of what it takes to add square feet indoors, this investment proves to be financially rewarding when it comes time to sell. With a myriad of decking options to select from, you can quickly transform the outdoors into an inviting space for family or friends to gather. Expect to gain back about 80 percent of your overall investment when you sell.
Remodeling an outdated bathroom pays off big time, and homeowners can expect to recover about 80 percent when the house sells. Spend your money investing in updated flooring, bathroom counters and cabinets, a fresh coat of paint and shower upgrades. Most older homes have tubs that typically take up a lot of square footage; rather than upgrade the tub, put that money in a new shower. Walk-in and steam showers are popular wish list items in today’s market.
It’s important to note that if your home just has one bathroom, rather than remodel that, put your money into adding a second bathroom. Studies show adding a second bathroom to houses typically increases the value of your home by at least 8 percent.
Do the research before you start the work to get the biggest return on investment for your renovation. While it’s certainly nice to enjoy the fruits of your labor while you still have some time in your house, make sure you have the potential home buyer in mind as you pick out colors, materials and themes, as you’ll want to capitalize on your investments when you sell. And if you hope to regain a good portion of your investment back, make sure the investments you’re making won’t cause your home to be over-priced for your neighborhood.
How can I keep an eye on my home’s value even if I’m not ready to list it?
Keep an eye on your home’s value relative to the market around it with Market Report— a free monthly report, jam-packed with important data that enables you to easily keep a pulse on your home’s worth. With Market Report you’ll have access to:
Monthly report: A snapshot of average days on the market for current and sold properties in your neighborhood and how quickly inventory is selling.
Sold properties graph: A look at the average home sale prices over the last 12-24 months in your area..
For sale data: Exact high and low listing prices over the last month, averaged for your convenience.
Sold data: What was the highest price? What was the lowest? You’ll be able to quickly know your neighborhood market average.
Property details: Color thumbnail photos, and home details including address, year built, number of bedrooms and baths, and list and sold prices allow you to do a quick comparison of your own home.
Sign up for Market Report today!