Housing markets show continued signs of strengthening according to reports released on Wednesday. The National Association of RealtorsÂ® reported that sales of pre-owned homes rose to 5.49 million in June as compared to Mayâs revised reading of 5.32 million pre-owned homes sold and expected sales estimated at 5.42 million sales. Expectations were based on Mayâs original reading of 5.35 million sales. Juneâs reading was the highest since February of 2007. Readings for existing home sales are calculated on a seasonally adjusted annual basis.
What home renovations add to the value of your home? Obvious examples include a newly renovated kitchen or bathroom which can really make the home more desirable to buyers. Adding storage space or a well-thought-out family room or other practical space can also be a very good investment that will increase your home’s value.
However, there are other projects that are not really worth your time or money and will allow very little opportunity to recover your costs when you sell the property. Here are a few examples of things that you think might add to the value of your home, but really don’t.
A beautifully landscaped garden might make the home more visually attractive to buyers when they are looking at the property, but it will not likely add to the selling price.
This is especially true if the new buyer is not interested in putting in the effort to keep the garden well-maintained and sees it as a burden or if they have kids. If they don’t have time to do the landscaping, they will need to hire a gardener which will add to their expenses. Plus it can take away from areas where kids can play effectively making the usable yard smaller.
Are you tempted to convert a bedroom into a room that is specific to one of your particular interests, such as an art studio, a library or a wine cellar? This will not add a lot of value to the home, because the next buyer is not likely to share your passions.
It might even make the home less than desirable, because the next owner will not want to spend the time and money renovating the room back into a bedroom.
You can create a hobby room; just make sure that you make non-permanent chances to the room so that you can quickly and easily switch it back to a bedroom.
A Renovated Garage
Converting your garage into a family room or a play room might give you a short term benefit, but you might regret it when you go to sell the home. Most people want a garage to serve its original purpose – as a place to protect their cars from the elements and store their shovels, garbage cans, leaf blowers and other outdoor things.