When you’re planning a big remodel, you need to keep in mind that not every upgrade means added value for your property. Your home’s value is determined by several factors and if you plan your project without considering them, you may end up spending more than you should. As a locally trusted kitchen and bathroom remodeler, DreamMaker Bath & Kitchen of Reno wants to help you avoid over-improving your home.
What Over-Improvement Means
When you over-improve your home, you’re essentially putting more money in it than you can get out. Such factors as the location, square footage and recent sales prices of comparable neighboring homes put a limit on a home’s value. Think of it like this: high-end finishes and upgrades can certainly improve a home’s interior, but they can’t improve an unappealing location or too-small size. However, if you’re planning to live in your current home for a long time, you might not mind over-improving your home, since you want to enjoy the upgrades and improve your quality of life.
Common Over-Improvement Mistakes
If you plan to sell in a few years, over-improving your home now can come at a cost. As reliable kitchen and bathroom remodeling contractors, DreamMaker Bath & Kitchen of Reno recommends working with an experienced listing agent to price your home accurately. Remember, over-improvement doesn’t always make a property attractive to prospective buyers. Here’s what you need to avoid.
Too Many Upgrades
Before improving your home, consider how long you plan on being in your home. If you’re planning to live in your home for 3-5 years, we suggest thinking carefully about the amount, cost and extent of the improvements you want to make. While some improvements will definitely help the property value, too much spending can render you unable to sell your home for the amount you spent improving it.
Not Checking ‘Comps’
A comparable sale or “comp” is a key tool used in real estate to help determine a home’s value and list price. Comping means comparing your home to others similar in size, condition and location, giving you and the buyer a good idea of the market value of your home as well as the market outlook for your neighborhood.
When improving your home, make sure to check nearby comps to get a clear grasp of your property’s real worth. You’ll also get to know how much a buyer might be willing to pay for a similar home in your area. Only check for comps in your area that have similar square footage and similar upgrades and improvements to the ones you’re planning to make to your home.
Let’s Start a Conversation!
When it comes to excellent kitchen and shower remodel jobs, DreamMaker Bath & Kitchen of Reno is more than capable of getting the job done. Let’s start a conversation today! Call us at (775) 200-9232 or fill out our contact form. We serve residents of Verdi, Truckee, Lake Tahoe, Carson City and surrounding communities.
