Know your market.
Be careful not to over improve or under improve your home for your market. If you live in a standard area, marble flooring may be considered an over improvement. On the flip side in a more upscale area marble flooring may be more acceptable or expected.
Cost doesn’t always equal value.
A big misconception I hear often is I paid $150,000 for my house and did $50,000 in improvements so my home value is probably $200,000. This is not always necessarily true. Some improvements may add equal or greater value, some may add some value and some could add little or no value. Be familiar with costs of improvements and potential values they could add.
Make sure you know if a “Permit” is required for improvement.
Typically installing new flooring or painting interior walls are not going to require a permit. However, updating electrical and plumbing or installing a new roof will require a permit. Each city should have a list of new construction or improvements of existing structures that require a permit. You can check online with your cities website. Typically it will be under building department. If not available online you can stop by your local city hall and request a copy of required permits.
Craftsmanship of improvement.
Make sure the craftsmanship is up to your markets expected standards. You’ve decided on a home improvement, taken all the necessary steps before hand to do that improvement and paid for that improvement. The last thing you want is for that improvement to be done in poor craftsmanship. This could contribute to little or no value being added to your home. Or even a worse case, loss of value added to your home due to that improvement having to be redone.
Finish improvement.
Be sure to see that improvement through to the end. You have just gutted and remodeled your bathroom (with proper permits). However, there is unfinished baseboard trim around some walls or missing outlet covers around electrical outlets. This can make a beautiful remodel job look shoddy and incomplete.
Stay neutral.
When doing an improvement the best advice is to stay neutral. Don’t necessarily pick colors that you like or bold colors. Especially if you are planning on selling your home in the near future. Everyone’s taste is different. Some may love this color or that color or that flooring or this flooring. Stay neutral in your selections to try and appeal to a wider potential market.
Steve Hemrich
Certified Residential Appraiser