Do Home Improvements Increase Home Value?
September 29, 2010
The answer to the above question is "It depends." I have recently noticed homeowners doing additions, re landscaping, painting and generally fixing up there properties. I had a home owner tell me that they were going to do some remodeling because they figured that they could not move up right now so they were going to make improvements to their present home. It is nice to see such upgrading taking place.
Two common additions to properties are swimming pools and changing a bedroom into a home office. On a cost versus value basis, these improvements rarely result in adding full value for their costs. However, they clearly may add to the home owner's enjoyment of the property.
Generally, folks believe that adding square footage to a home will increase the home's value. Done properly with the necessary permits, added square footage will add to the assessed value. As for adding to the market value at the time of a sale, the value added will depend more on the usefulness of the added square footage for a potential buyer. If the improvement is something that is uniquely suited to the home owner, it may in fact decrease the saleability of the property.
It may seem odd that an improvement can reduce value, but it is a possibility.
When considering additions and alterations, a home owner might be wise to consult a local real estate agent for input about the value of a proposed improvement.
The answer to the above question is "It depends." I have recently noticed homeowners doing additions, re landscaping, painting and generally fixing up there properties. I had a home owner tell me that they were going to do some remodeling because they figured that they could not move up right now so they were going to make improvements to their present home. It is nice to see such upgrading taking place.
Two common additions to properties are swimming pools and changing a bedroom into a home office. On a cost versus value basis, these improvements rarely result in adding full value for their costs. However, they clearly may add to the home owner's enjoyment of the property.
Generally, folks believe that adding square footage to a home will increase the home's value. Done properly with the necessary permits, added square footage will add to the assessed value. As for adding to the market value at the time of a sale, the value added will depend more on the usefulness of the added square footage for a potential buyer. If the improvement is something that is uniquely suited to the home owner, it may in fact decrease the saleability of the property.
It may seem odd that an improvement can reduce value, but it is a possibility.
When considering additions and alterations, a home owner might be wise to consult a local real estate agent for input about the value of a proposed improvement.
posted by shirley harry at 10:06 AM
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