Which Renovations to Make

Which Renovations Truly Boost My Home’s Value?

If you build it, they will come . . . but, will they buy?

Renovations can be the determining factor in a home sale, and homeowners are spending more than ever on remodeling. According to the Remodeling Activity Indicator (RAI) used by Harvard's Joint Center for Housing Studies, homeowners spent almost $127 billion on remodeling in 2004 — up by almost 6 percent over 2003 levels.

But which renovations truly increase the market value of your home, versus simply increasing the comfort level for inhabitants?

Kitchens and bathrooms tend to top the list for remodeling, says Joan Lonergan, Owner/Broker at Coldwell Banker Village Green Realty. “Dollar for dollar, you get more return on your investment by updating these two high-use areas. Of course, the value of making improvements varies from home to home. If you pour money and effort into transforming your kitchen into a fabulous high-tech dream-come-true, but your roof is shabby or your windows need replacing, neglecting those structural repairs can diminish any positive impact from the interior remodeling and actually hurt a sale.”

Other popular improvements, such as upgraded landscaping or adding a swimming pool, may increase the marketability of your home – but not necessarily increase its sale price. These types of improvement can sometimes even deter potential buyers.

“Homeowners may pay anywhere from $2,000 - $15,000 for the same landscaping job,” says Joan, “but a home buyer may not even be able to tell the difference in the amount of money spent. And, depending on the season, that beautiful new landscaping might be snow-covered or drought-stricken when your home is placed on the market. Adding a pool is really an investment in quality of life, and its value is measured more in terms of the enjoyment of having one as opposed to measurement of a good return.” In some areas of the country, pools may even limit the number of potential buyers while helping to attract offers in others. It’s wise to discuss potential improvements with your realtor before making a final decision.

Smaller Investments Bring Positive Results, Too

In addition to large renovations and remodeling projects, other improvements can improve curb appeal and positively influence your prospects for a quick sale. Interior and exterior painting can dramatically refresh a tired-looking house, as can new windows, siding and gutters.

If you had to choose only one thing to do to make a huge impact on your home’s curb appeal, what should it be? “Keep it clean,” says Joan. “Get rid of overly decorated wallpaper, add a coat of neutral paint and clear out the clutter, both inside and outside your home. Buyers get an impression of an appealingly clear palette, which makes it easier for them to visualize themselves in your home.”

For additional information, please give your Coldwell Banker Village Green Realtor a call or visit “remodeling to increase property value.”