Home owners looking for quick and easy ways to increase their home’s value in this tough housing market should get ready to take on some do-it-yourself projects. According to realtors and housing experts, doing things like making simple repairs or updating the interior lighting can make a real difference in how quickly a home sells and what price a buyer is willing to pay.
In fact, small improvements to a home’s appeal can increase going price by several thousand dollars. Brokers in New York, for instance, estimate that adding fresh towels and throw pillows at a price of around $700 can actually add about $25,000 to the sales price. Other easy “fixes” include adding a fresh coat of paint to interior walls and exterior surfaces and de-cluttering the living area.
Though these changes are minor, the goal of any home improvement project in this market should be making a property stand out from among the rest. If potential buyers see the home as a “fixer-upper,” the offers that they make and the eventual sales price will be much lower.
Of course, the higher the perceived value for an improvement, the more money buyers are willing to spend. The kitchen is one big area that home sellers can use to get drive up the price. The estimated price-add for replacing the kitchen cabinets, for example, is $107,000, and simple add-ons like a new kitchen faucet, cabinet handles or a modern kitchen backsplash can go a long way.
While these more minor changes to certain décor elements have proven to add value and incur a low cost, it is also estimated that many full scale renovations are not necessarily providing the return expected. When budgeting out the potential added value a particular renovation could have, many have turned to latest data outlining just how much others have been able to recoup from DIY home improvements before selling their home. The following numbers from Hanley Wood, LLC 2010-11 Cost vs. Value Remodeling Report particularly interesting:
· 68% of the cost incurred for a major kitchen remodel is estimated to be recuperated in the resale of a home after renovations.
· 64% of a bathroom remodel is estimated to be recovered after resale in the U.S.
The real task for home sellers, then, is deciding on a repairs budget and looking at the home with a critical eye for making the overall look and feel of the home more inviting to potential buyers. Even small things can have a surprising effect on the willingness of home buyers to meet a seller’s asking price.
