Real estate is needlessly complicated by people when it comes to buying or selling property. The fundamentals are actually pretty simple, and you can add value to your home just before you sell and move out.
But many people fail to add value in the right places and maximize the returns on their investment. “You should aim to get back two dollars for every dollar you spend renovating the house,” says celebrity home-renovation veteran Cherie Barber. Barber recently gave an interview where she described the process of renovating a house to add value. Here are the top five tips from her interview you can use right away:
- Create More Space
The single most important piece of advice from the interview was to create more space. Space is valuable no matter where you live. Barber estimates that adding an extra bedroom could add between $30,000 to $150,000 to your home, depending on where you live. Of course, not everyone can simply add a whole new bedroom, but perhaps you could work on the interiors to create more space where needed. Older homes tend to have a very boxy layout, and cutting down some of the walls could make it more roomy.
- Focus on the Right Aspects
Your budget is always limited, so it makes sense to focus your energy on the aspects of the house that add the most value. Start with the roof, which is considered to be the best way to add value to the home. Then move onto the plumbing, wiring and restumping. Pay attention to the areas buyers love most – like the light fixtures, kitchen and bathroom.
- Stay In Budget
Always have a fixed budget and try not to go overboard with it. If your repair costs exceed 10% of the total value of the home, you defeat the purpose. Also, plan for the inevitable since most renovation projects go over budget. Have a plan and stick with it.
- Hire An Expert
The easiest way to cut costs on the renovation is to do it yourself. But not everything can be or should be done by an amatuer. Some aspects are just better left to the experts. If you pick the right ones, they’ll do a great job and save you money in the long run. If your renovation plan involves something complicated like a floating floor or a deck, reach out to someone who knows what they’re doing.
- Ask The Right Questions
When renovating your home, you’ll be working with a lot of different people. Hopefully you’ve hired experts who are really good at what they do, but it makes sense to get all the details beforehand. Ask about licenses, credentials and insurance. Make sure you have the terms of payment set before the work starts. Preferably, pay half the amount owed before commencement, and half at the end.
Finally, go through their portfolio of work and get in touch with someone they’ve worked for in the past.
There’s a lot more that can be done to add value to your home, but these five tips should get you started in the right direction.