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Month: December 2015

Remodeling: Will it Be Worth it?

 

Interested in remodeling to improve your property’s value? Make the right choices and you just might end up getting great returns. Cha-ching!

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Not surprisingly, the most efficient ways to improve your property value include revamping the kitchen and bathrooms. The kitchen is considered the most important room of the house to have in good condition, followed closely by bathrooms. However, if you plan on redoing your kitchen, proceed with caution. Over-doing it can actually give you a lower return if you don’t improve the rest of the house to match it.

If one area is outshining the rest of the house by a long shot, you risk having your remodeling work being dragged down…as well as having a mismatched home.

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Now that your kitchen and bathrooms are pretty, what other remodels should be taken into consideration? Well, according to Remodeling Magazine’s 2015 Cost vs. Value Report, a few remodeling projects you can expect high returns from are replacing your garage door, adding a wood deck, manufactured stone veneers, and adding a steel front entry door.

What about adding something strange or unique to your home, like a hidden library or sunken den? Thinking outside of the box can definitely pay off if you can find the right buyer. The problem is, though, it most likely won’t net you the kind of cash that you paid for it. Often we think to remodel just before moving, but sometimes it’s a better payoff for you to personally enjoy your efforts before moving on to the next residence.

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If you’re looking for inspiration, check out these fun, wacky remodeling ideas!

Another awesome money-saving tip is to go green. Certain energy-efficient appliances and features such as doors and windows are your best bet. They will save you money on energy, but also earn you up to 30% tax breaks on specific items! How cool is that?

One last thing to consider when remodeling is that it’s extra important to make sure that you have every step of your journey planned out ahead of time. There’s no avoiding the inevitable delays and cost overruns, but a surefire way to guarantee you’ll waste massive amounts of time and money is to go into your project without first mapping it out. There are plenty of resources to help you along the way – check out nari.org’s remodeling tips for a complete checklist of what you can expect during your remodel.

 

Photos courtesy of trexpertwitness.com, restoringfloridahomes.com, b-homeinspections.com, and buzzfeed.com.

Selling? Don’t Ask for Too Much

There are, understandably, reasons why a seller may want to price their property high. Maybe you want to try and make the highest profit possible from the sale, or leave room for negotiation. Or maybe the sentimental memories you attach to the property give it more value in your perspective. Whatever the reason, overvaluing your property, though very tempting, can actually end up losing you money – here’s why.

Nearby properties of similar merit (but much lower price) will be selling left and right while yours gets no offers. Your property may have recent upgrades, or more storage space, or better parking, but the fact is that when a buyer sees a property that they feel is a better value, they’re much more likely to purchase that instead.

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Let’s say you priced high to leave wiggle room for negotiators. Unfortunately, there’s a chance those negotiators may miss your listing completely because they only searched for properties within a specific price range that they would be willing to pay. Maybe you would have sold it to them within their budget, but they don’t know that – because they didn’t even see it.

One of the biggest issues with overvaluing is that it may cause your property to languish on the market. Time is money when it comes to selling your property! Once you pass the initial 30 days, your listing may even come across as suspicious if it hasn’t sold yet. You may ultimately end up having to sell for a lower price than you would have if it were priced correctly from the beginning.

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So you priced high, and your property sold anyways. Hooray! Unfortunately you still aren’t necessarily in the clear. During the loan process, the property will require an appraisal if the buyer is financing the purchase (which they almost always will). If this appraisal comes in too low, the lender may not authorize the loan unless the buyer covers the difference in cash – which may or may not happen. You certainly wouldn’t want the sale to fall through, would you?

The bottom line is, as much as you may want the extra profit, you are going to be much better off pricing your property correctly from the beginning. The selling process will move much faster and smoother, and you can save yourself some grief and anxiety!