Mortgage rates, unemployment levels and available real estate inventory can all play key roles in the fluctuation of property values. In fact, pretty much anything from Greek debt and its role in the Euro crisis to the incessant barking of your neighbor’s dog can affect the value of your home.
While the average homeowner cannot control interest rates, European fiscal policy or even neighbors’ annoying pets, there are areas within our own homes that when improved or remodeled can not only improve our quality of life, but also add to the value of what for most of us will be the largest investment we will ever make.
Bakker Construction in Salinas, can offer a homeowner numerous ways to potentially increase your property value through remodeling projects that in general, offer a great return on investment.
However, research shows kitchen remodels offer the highest return on investment of all remodeling projects.
“A well thought out and aesthetically pleasing kitchen creates a feeling of comfort and warmth to anyone who steps into it,” explains Susan Davies, a Real Estate Agent from Palo Alto, CA. “I’ve sold more homes on the basis of the client falling in love with the kitchen than for any other reason.”
On the flip side of the coin, a worn or dilapidated kitchen can turn potential buyers off, decreasing the property value by more than one might expect.
“I often suggest to potential sellers to invest what they can in their kitchen before putting the property on the market,” Susan adds, “Even just refinishing cabinets or installing some new counter tops can go a long way in helping to decrease DOM (days on market) and increase the property’s final sale price.”
The bathroom is another area favored by savvy homeowners who wish to increase their property values. Like the kitchen, bathroom remodels can become pricey but as Southern California interior designer, Liz Chattan explains, “There is a bathroom for every budget. It’s just a matter of taking the time to find the appropriate materials for the job.”Liz is correct.
There are plenty of cut price tile outlets where quality tile can be purchased for a dollar a square foot and stores like Home Depot or Lowes offer a wide variety of bathroom fixtures to fit the budget of the more economically challenged among us.As far as the actual remodeling itself, a reputable and experienced building contractor will work with the homeowner to refine the scope of work and material choices to fit within the client’s budget.
Enlarging your home can be a surefire way to add property value, providing the correct initial research is undertaken. Henry and Elizabeth wanted to enlarge their two bedroom, one bathroom home by adding a master suite, basically turning their house into a three bedroom, two bathroom.
This required a considerable financial investment they were not sure they would be able to recoup, if or when they decided to sell the property. However, at the advice of a close friend, the couple took steps to evaluate the potential value of their home should the proposed work be completed.
Henry explains, “We asked our realtor for the sale prices of any three bedroom, two bathroom homes in our neighborhood that had sold in the prior six months. Once we had the list, we were able to subtract the cost of our own home from the average sale price of the recently sold three, two’s. We found the difference to be 20% greater than the estimated cost of construction for our addition. This allowed us to move forward on the project with the comfort of knowing that we were making a sound financial investment as well as improving our quality of life.”
The scope of work for an addition will almost always require design and engineering as well as the construction itself making the appointment of a Design-Build firm as opposed to a separate designer and contractor a more cost effective option.
The noise reduction, general aesthetic appeal and all important savings in energy bills are obvious to most of us.
Plus, when considering that new windows are one item consistently close to the top of a realtor’s list of selling points when marketing a home, the high return on investment resulting from changing out your drafty old rattlers is as clear as the new glass in the windows you replace them with!
With a little imagination and a relatively small financial investment, a tasteful and professional paint job can transform the façade of a property.
After all, the front of a house is the first thing any potential buyer will see, whether on an MLS listing online or when viewing the property in person for the first time.
“It’s a cliché but it’s especially true in Real Estate,” says Realtor Susan Davies, “You only have one chance to make a first impression.”
Baker Construction would like to be your contractor of choice when you looking to increase your home’s value. We can help you with a wide range of home improvement from simply painting to more extensive projects like a kitchen or bathroom remodel which can greatly increase your home’s value even in the current buyer’s market.