When it comes time to sell a home many people wonder, "Why in the world, did I not fix this 10 years ago when it first happened?". Is it really worth it to make repairs or remodel your home while you're living in it though?
The first one is pretty easy to answer. When it comes to whether or not you should fix any repairs on your home, the answer is almost always yes. There are some financial situations that may prevent that from time to time, but most of your repairs can lead to deferred maintenance if, in fact, you're not keeping things up. Living in a home that needs repairs can also bring on an emotional strain that just fixing can improve the ease of your day-to-day life. For example, having a broken dishwasher or having a sliding door that doesn't exactly slide can get to be very frustrating after some time.
As we move into the topic of remodeling, that same logic oftentimes applies the way that you can do that in making sure that you're doing it well is to make sure that you do not over improve the house. If your house has some old cosmetics and you want to make some updates, you can actually work with a real estate agent to find out what your after renovation value (ARV) would be.
Let's say my kitchen is outdated, so I decide to spend $10,000 to purchase new countertops and appliances. But in talking to my agent, they've told me that will actually increase the value of the home by $25,000. Now, by knowing that case is true, that means I actually have something to gain when I sell the house just from making those changes.
Now, something to keep in mind, when you look at your after renovation value, make sure that it's still in line with the price of other homes in your neighborhood. You can easily get crazy spending hundreds of thousands of dollars improving your home, and that could be money that you'll never get back. The improvements you make don't have to be complete remodels, either. There are smaller upgrades you can make that can have a great return like giving your walls a fresh, neutral coat of paint or replacing your garage door.
When purchasing a home don't rule out the option of buying a home that needs some cosmetic work or repairs. If you pay the right price and act as a "flipper" to improve the home while living in it you can make hundreds of thousands of dollars when it comes time to sell. Oftentimes you'll actually want to do the renovations yourself rather than allowing someone else to buy the property at a reduced market value and then do those repairs themselves. This could be a great option for those who are still on active duty. As a military member you know you will be at the duty station for a certain period of time so you can purchase a home that needs some love and when it comes time to PCS again you can sell it as an improved property.
For more questions regarding home improvements ad after renovation value please reach out to a Sentry Residential agent by visiting www.sentryresidential.com.