When homeowners are gearing up to list their home, they often go around fixing all of the problems they’ve been meaning to get around to – that leaky roof or those outdated windows. However, says Amerika Davis, Williamsburg Managing Broker of Prudential Towne Realty , it is possible to over-improve your home, which can make it more difficult to sell for the price you were hoping for, and can result in a financial loss.
“The last thing you want to do when undertaking a home improvement is go overboard,” explains Davis. “This means fixing up the home to the point where it becomes worth far more than nearby neighborhood properties.”
There is a science to pricing homes, Davis explains, and it has just as much to do with what’s happening with the homes around you as it does with your own home. Potential homebuyers will be reluctant to pay, say, $200,000 for your home when others are priced at $150,000. If they want to pay that kind of money, they will likely make a purchase in a neighborhood where most of the homes sell in that price range.
“Carefully measure the cost of any improvements you want to make against the overall values in your neighborhood,” cautions Davis. “Otherwise, you may not recover your costs or increase your property value significantly.”
So, while fixing the roof or finally finishing that half-finished half-bath are good ideas, revamping the kitchen or adding a swimming pool may do more harm than good.
For more information on selling your home, please contact Prudential Towne Realty at email@example.com, 888-737-9246, or Prudential Towne Realty