Hi, I’m Warren Oberholser. I’m a realtor in the East Bay Tri-Valley area in Northern California. My goal is to help both buyers and sellers get maximum results for one of their biggest investments, their home.
Are you selling your home? Then, avoid these three popular renovation projects, and I’ll tell you why…
7.95That’s how many years the average American homeowner lives in their home, according to the number crunchers at Attom Data.Whether in the beginning, middle, or end of this eight-year period, someday you will sell your home. While it’s great to renovate for comfort and enjoyment, keep in mind that what you do to your home now may have an impact on how long it takes to sell and how much money you’ll walk away with. In other words, investing 25,000 and remodeling will not necessarily mean you can tack on an extra 25,000 to the asking price when you sell the home. Let’s take a look at some of the worst renovations you can make if you hope to get a payoff when you sell.
Number One: Installing Wall-To-Wall Carpet or Hardwood Flooring
Yes, there was a time when wall-to-wall carpet and hardwood flooring would boost a home’s value. Those days are long gone. The fact that flooring giant Armstrong sold off its hardwood line is a tip that Americans are officially out of love with hardwood floors. So, what about carpets? Lowe’s had such a hard time selling carpet that they decided to offer free installation but to no avail. They still saw a drop of 8% in carpet sales. Today’s homebuyer prefers luxury vinyl and will discount a home’s perceived value if they need to replace flooring after moving in.
Number Two: Converting the Garage
Okay, garage conversions are more popular in some areas than they are and others. They are especially popular in older neighborhoods with small homes. Hey, who can blame someone for converting a garage into a bedroom when they need the space? Just don’t expect that conversion will translate into more money when your home is sold. In fact, if the conversion was done without a permit, you may have a problem when selling. However, if you did use a permit, it depends on the price class of the home.
In fact, “If it’s not permitted, they’ll have a problem selling,” cautions George Holmes of Eagle Appraisal of Las Vegas. And, it if is permitted?
“It depends on the price class of the home,” Holmes said. “If it’s a cookie-cutter home and it lacks a 2-car garage, we’ll deduct $8,000 to $10,000 from the value. It’s not cut and dry, however,” he cautions.
You can almost count on your home appraising for less than similar homes that have garages.
Number Three: Permanent Conversions of a Bedroom
The bottom line, bedrooms add value. Often, however, homeowners permanently convert the third bedroom into an office gym or a family room. Well, there is nothing inherently wrong with adding any of these conversions. If you can’t change the room back to a bedroom when you sell your home, the value of your home will diminish since you now have only two bedrooms and appraisers are going to compare your home to other homes, which is two bedrooms. Okay. Where do you spend your money? No matter how much you renovate or update your home, if you have deferred maintenance issues, you stand a good chance of losing money on your sale. What are your home renovation dollars towards the less sexy projects, new heater, plumbing, electrical upgrades, and anything that boosts the homes of curb appeal?
With this aggressive seller’s market, we’re experiencing across our country, as well as in the Tri-Valley area, probably the best area, to begin with, is just a roof and termite inspection. After you’ve had these inspections, if no major issues are found, you may just want to clean up your home, get it ready, and put it on the market to sell.
I hope you enjoyed this article. Please let me know if you have any questions. Warren
Hello…I work with both buyers and sellers in the Tri-Valley area of Northern California. The Tri-Valley is comprised of 6 cities: Pleasanton, Livermore, Dublin, San Ramon, Danville, and Alamo. To better understand what each city has to offer, I have created a Pros and Cons video and BLOG for each – (Pros & Cons for Pleasanton, Pros & Cons for Livermore, Pros & Cons for Dublin, Pros & Cons for San Ramon, Pros & Cons for Danville and Pros & Cons for Alamo). If you are thinking about purchasing or selling a home, please reach out to me by text, phone, or email. If it is convenient, I can schedule a Zoom chat so we can discuss your home goals. Wishing you all the best on your home journey. Cheers!
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