So the house I am considering has only one real problem. It is older and doesnt seem to really be set up for a TV/family room. The yard is a good size and I was considering adding a little 20x20 multi-use building for kids, tv, arts, etc. What does this do for property value?
Also I was wondering what sort of renovations increase value the most for the least amount of money. I have heard many things about stainless steel, granite, hardwood, etc. and am having a hard time makng decisions about what exactly to put in. The floor is currently concrete slab so everything is possible. The first floor is actually entirely gutted so I have lots options.
The 2nd floor is carpet (which needs to be replaced). Again hardwood or carpet?
Here’s a little info on the house. ARV is about 350k. It’s 2300 sq. ft. in a pretty afluent neighborhood.
I’ve heard adding a pool makes no sense, but what about a small one to make the backyard something to marvel at? I can get a nice little pool done for 12,000. Are there any circumstances in which adding a pool can add more value than it costs?
I am sure I’m going to bet a bunhc of responses saying to learn my market better to make these decisions, but what has worked for you in your area? Any replies are appreciated.
My first question is how much can you buy for it??
Based on that answer we can give you some suggestions. It’s hard to offer you advice because we have no idea what your BUY IN is for the property.
Example…
If purchase this house for let’s say $175,000 or 50% off, then you have a lot of options. If on the other hand you pay $250,000 for it, you need to cut the sale price and just get it clean and finished. At $250K with a gutted first floor your going to be VERY tight just getting THAT much done and leaving room for a profit.
It really depends on your price point. Is a $350K home in your area a high end home or not? If you have a high end home, and other homes for sale in your price range have those upgrades you mentioned, you had better do them.
I work in the starter home price range in my area. Putting in granite slab and stainless steel does not make economic sense for me, because almost no other homes in my price range have those upgrades, and the ones that do don’t sell for that much more than new white or black appliances.
If I were to move up a price range, yes - I would do those things.
You must have an updated kitchen and bath to turn a house over fast. Color is also good - don’t just do white everything. Have a nice warm color on the walls with white or wood trim.
Personally - I am not sure the pool adds value. Depends on your climate. I am in the Northeast, and pools are not the most requested item LOL. Most people want large yards up here, not with a pool.
I actually own a pool company in the Northeast (cleveland, ohio). We expect that customers will get back 50 cents on the dollar. So on an average home in the 300k range it doesnt make as much sense. When you get into higher end homes though you may get a buyer to pay more because you have that ammenity that another house doesnt have. We build pools with waterfalls and grottos so the average price of our pools is over 100k. When you do them on million dollar houses though they add an appeal to the high end buyer
If a person wants to buy a house with a pool they will buy a house with a pool or a house without a pool and put one in. If a person does not want a pool they will not buy a house with a pool. Most people don’t want a pool (small kids, ignorance to up keep, lazy to upkeep, scared of expense, etc). If you put in a pool you limit your market.
In Houston houses with pools sell for the same amount as houses without pools. The premium that you would expect is taken off for the above reason. They stay on the market waiting for a person that wants a pool. You should look into that for your area. In Houston pools are free.
I think that a pool is detrimental when you try to sell a house. Many people will not consider a pool. They don’t want the upkeep or the liability.
It might be different if you are in Florida, but I doubt it.
Paint offers the best return on your investment.
If it is an upscale area, either granite or butcher block for the counters (granite is gertting to the point of being a bit over-done)
I am liking the brushed nickel appliances-- they are new, so have cachet.
Carpet upstairs because of noise factor.
Tile the downstairs if you are in a warm climate. Stone tile if the house is in a really nice area. Hardwood floors in a cooler climate. Bamboo floors if the area has enough humidity so that the bamboo won’t be damaged.
If the house does not have a modern floorplan, you are going to have trouble selling it when there is so much being offered for sale. If you start knocking out walls to change the floorplan, you are getting into a pretty major renovation.
I try to stay away from bad floorplans. If you must be knocking out walls to make the floorplan acceptible, at least be sure you get a killer deal when you purchase.