Home Improvements that Add Value when You Sell

If you expect to sell your home in the next few years, you may be wondering about home improvements that add value to your home. Here are 7 tips to help you choose value-added home improvements.

1. Don't go Overboard. Whether replacing siding or windows or adding a deck, upgrades and additions to your home should be consistent with the neighborhood. Remember, sometimes more is less when it comes to making home improvements. For example, if you live in a middle-class neighborhood where most homes have relatively modest, but serviceable decks, adding a large multi-level deck with a built-in hot tub may set your home apart, but you probably won't get your money back when you sell your home. Likewise, replacing old windows with more energy-efficient windows can be a good investment that potential buyers will value, but you are less likely to recoup the incremental expense of adding bay windows at the same time.

2. Make Cosmetic Improvements. Relatively simple, cosmetic improvements, such as painting the exterior and/or interior of your home and replacing worn or stained carpet, which significantly improve its curb appeal or how well it shows, can pay off big.

3. Stick with Neutrals. If you paint shortly before you plan to sell your home, choose relatively neutral shades. Bright colors or dramatic color combinations may be eye-catching and contemporary, but they also can turn off potential buyers who don't share your taste and anticipate having to invest time and money to undo what you've done.

4. Add Storage. Adding storage space, such as cabinets, shelves and bins, can add value to your home by helping to reduce clutter so that it shows better to potential buyers. Also, additional storage space will make your home seem more livable to potential buyers.

5. Add Space. Find ways to add square footage. Making a deck into a screened-in porch, making a screened-in porch into a sun room, converting attic space into a bedroom, or refinishing the basement are value-added home improvement projects that create more livable space for which potential buyers will pay more.

6. Invest in an Outdated Kitchen. Many homeowners view the kitchen as one of the main focal points of a home, so even modest investments in an outdated kitchen can add value to your home. Depending on your budget, replace or update old cabinets, counter tops, hardware, fixtures, appliances and flooring.

7. Enhance Your Home's Energy Efficiency. There are three reasons to consider home improvements that enhance your home's energy efficiency. First, they reduce your energy costs as long as you live in your home. Second, they are great selling points for your home, since they will save buyers money on energy costs and burnish your home's "green" credentials. And, third, Federal tax credits may cut the upfront costs of some energy-saving home improvements, including adding insulation and installation of qualified windows, doors, roofing, HVAC (heating, ventilating and air conditioning) systems and water heaters. For more information on Federal tax credits for energy efficiency, go to www.energystar.gov.

8. Don't Add a Pool. Unless your home is the only one in the neighborhood that doesn't have a pool, don't add one. Most real estate experts agree that this is a money-loser for home owners, since the perceived downsides of a pool, including maintenance, expense and safety issues, can turn off many potential buyers.

Sources:

Pat Curry, home-equity.interest.com, Home Improvements Improvement Value Remodeling

www.smartmoney.com, Which Home Improvements Pay Off? at SmartMoney.com