When you are selling something, there’s basically one thing that matters the most – maximizing your profit. And naturally, selling a house is no different. That’s why it’s important to increase the market value of the house as much as you can before the sale. But this requires a lot of balancing. On the one hand, increasing your home value is important – but on the other, you don’t want to waste resources. If you spend too much money on the wrong home renovations, you may end up lowering your profits. And that’s why you need to know how to upgrade a home without burning through your budget.
Where to Start When You Upgrade a Home
Most people decide to upgrade a home before selling it. And it’s only logical, really – greater home value is the key to success in a highly competitive housing market. But while increasing value is important, it is also important to do it right. You don’t want to spend your remodeling budget the wrong way and end up losing money in the end. That’s why it’s important to know where to start.
State of the Real Estate Market
If you ask a home seller without experience, they will almost certainly tell you something incorrect. They will say you should start with improving the look of the house. But that is actually an outdated way of thinking. Basically, the Internet and higher education rates have made their impact on every market, including real estate. In this day and age, the evolution of the real estate industry has caused changes in the buyer-seller relations. Namely, sellers are facing buyers who are much more well informed than they were a few decades ago. To put it simply – people know what they’re looking for. And because of that, these days they value practical improvements a lot more than surface renovations. But with that in mind, what exactly should you spend your resources on?
Energy Efficiency is a Safe Bet
Therefore, we recommend investing the better part of your budget in improving the energy efficiency of the home you are selling. Recent market practice has proven this is a good course of action. While renovating specific rooms or the exterior is still fine, energy efficiency adds quite a lot to the property value. And while it may seem more expensive, this isn’t money you’re throwing away. Don’t forget, your return on this investment will come in the form of increased market value.
If you’re looking to save money on this and leave some room in the budget for other things, you don’t have to do a full-house job. Start with attic insulation – this will greatly improve the house’s energy efficiency. This is one of the better ways to upgrade a home before a sale.
Furthermore, there are other improvements you can make. First of all, how old is the home you’re selling? If we’re talking about a really ancient house, the HVAC system probably needs a major upgrade. This is the kind of upgrade home buyers really appreciate in today’s real estate markets.
If you’ve made improvements to energy efficiency and other practical upgrades, you can focus the rest of your budget on other types of improvements. Namely, we’re talking about the visual appeal of your home to potential buyers. And again, you will also need to balance your budget when it comes to this. You should face one key fact – you won’t have the money to fix and improve everything visually. So, what should you stake most of your budget on when you upgrade a home?
The Exterior is Crucial
To this question, there is really only one good answer – the exterior. In today’s fast-paced world, the real estate market is ever changing. Yes, new market trends come in and out with the speed of a revolving door. But one thing has remained truly constant – the importance of curb appeal.
There’s an old saying along the lines of ‘There is no second chance to make a first impression’. And it isn’t true anywhere as much as it is in real estate. No matter what other improvements you make, no matter how well you plan things out, know one thing – if the first impression a potential buyer has of your home is a shabby exterior, this will sway them greatly not to buy. Therefore, it’s worth to invest some money in basic visual improvements when you upgrade a home.
For example, you should replace old doors and locks and do similar external repairs. Think about it – if you were buying a home and moving in, you would want to know that you’re going to keep your valuables in a safe place. Furthermore, definitely invest in some basic landscaping. A neat and tidy yard can go a long way toward presenting the house as a respectable home.
If your remodeling budget still has some money to spare, it’s time to take a look at how you can upgrade a home from the inside. Specifically, how do you set your priorities when choosing what interiors to spruce up?
First of all, we would recommend starting with the kitchen. Bear in mind, this is no arbitrary choice. Namely, kitchen improvements are a good choice because you don’t have to spend too much money on them if you don’t want to. For example, you don’t really need to replace the appliances if you can’t afford to. Instead, focus on bright colors and clear textures that will breathe new life into the kitchen. Maybe you could just paint the cabinets, or replace the cabinet doors. Also, make sure to replace all the small handles and cheaper doors. This won’t cost too much money but will go a long way toward increasing home value.
Above all, bear in mind that a presentable and fresh kitchen area has a huge psychological effect on buyers. Studies show that most home buyers name the kitchen as their favorite in the entire house. That’s no accident either – a kitchen is a place where the whole family comes together. So, if you can spend money only on one part of the interior – the kitchen is your surest bet.
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