Do Those Home Improvements REALLY Add Value To Your Home?

Many years ago, there were home owners who had a swimming pool added in their back yard.  They believed that while they certainly would enjoy many hours swimming, the pool would actually add value to their home.   Still today there are many misconceptions about what adds true value to your Lancaster county home and can make it sell for a higher price.

Some sellers have found out the hard way that modifications they perceived as adding value actually do the opposite, especially in today’s market.   The aforementioned swimming pool has been a common culprit in past years.

NAR (National Association of Realtors) releases reports periodically that clarify what adds value and what doesn’t.  Here is a checklist from some of those NAR reports to help you determine what improvements you really want to make for your home:

  • Security systems, as well as  family rooms and dining rooms tend to add the most value
  • Central AC can add up to 12% to the price of a home.
  • Adding an extra bedroom adds only about 4% to your home’s market value.
  • Remodeling to add additional living area isn’t as “value-added” as you might think.  In fact, adding up to 1,000 square feet of living area increases market value by as little as about 3%.
  • Having a finished basement, on the other hand, can increase market value by about 9%.
  • Adding an additional bathroom, on the other hand, can add 24% to your home’s value.
  • Having a garage can increase your home’s value by about 13%.
  • Advertising your home as a “fixer-upper” can decrease market value by 24%.

If you’re thinking about remodeling your Lancaster county home (or wherever you are located), use these guidelines to help you be smart with your money and manage realistic expectations.  If you’ve already invested in remodeling, these guidelines will help you understand what you’ve done that actually adds value and what doesn’t.

Contact me if you would like help in making the right home improvement decision or if you would like a clearer picture of what to expect when you put your home on the market:)

For more tips and hands-on help with Lancaster County homes and real estate, give me a call at (717) 413-2749

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~ by bobenglishsellshomes on September 21, 2011.

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