Quite often I am asked the question, where can I spend my money the best to add value to my home?
One of the greatest parts about investing in real estate is that you can add value to your home simply by making home improvements. Not all home improvements are as appreciated by potential buyers as others.
So where is your money best spent when getting ready to add value to your own home or investment property? Studies show that exterior replacement projects will get you the greatest return on your home improvement. It appears to be the “don’t judge a book by its cover” does not necessary work for real estate especially in the current Petaluma / Sonoma County real estate market. A great story from the field example of this is I was out at our Frank Howard Allen office tour the other day investigating a property for an investor client of mine. The curb appeal of this property was amazing, but as soon as you walked through the door, the smell was unbearable like diving into a sewage tank and taking a time machine back to the 70s at the same time. Besides the curb appeal being as great as it was, the interior was going to be a great opportunity for my all cash investor who flips homes. We tossed an all cash 10 day close offer at the seller and lost out to another all cash buyer who offered well over asking. I later heard that the Open House the previous Sunday had over 30 groups through. What this story demonstrates is that first impression is very important for a potential buyer. More often than not I am out showing property to clients, pull up to an ugly house and they tell me to keep on driving. Most of the time I don’t blame them.
Back to the best improvements to make in your home improvement projects. The studies show that exterior home improvements are number one. This being anything that adds curb appeal. New garage door, paint, front door, light fixtures, repaired improved siding, gardening etc. The next home improvement project to add great value is a minor kitchen remodel. Giving a buyer the chance to envision themselves cooking in your kitchen is only a minor kitchen remodel away. The money spent here is well worth it in most situations. If your house has an attic large enough to turn it into a bedroom, by doing this, your home will appeal to even more potential buyers. Getting creative can pay major bucks in the real estate market. Number 1 will always remain the curb appeal of the property.
So before you take on your next project or want to add value to your home before putting it on the market, think about curb appeal and first impressions. Before your next project or you put your house on the market, do not hesitate to give me a call. I have an entire list of service providers that I can recommend for your next project.