Why Should You Avoid Over Improving Your Home Picture this. You spent the last 10 years making improvements and high end upgrades to your home with the expectation that when you sell it, you’ll be able to recoup your expenses and make a huge profit! You choose your Orlando Realtor, she or he tells you what your home can be listed for, and devastation sets in. Why? Because the dollar amount you thought you could sell it for is way out of the ball park! It happens all the time. What I hope to help you learn is why this could happen and how you can avoid it in the first place. What is Over Improvement?
An over improvement is when you make improvements to your home that are excessive in comparison with similar properties. When listing it for sale, your asking price will not be supported. Tips for Avoiding Over Improvement
It’s all about your neighborhood…both inside and out
• Exterior additions to your home should remain in keeping with the neighborhood’s overall design scheme.
• Avoid lavish landscaping updates unless needed to be comparable to the homes in your neighborhood.
• Learn what the most common materials in the comparable homes are.
o If none of the homes in your neighborhood comparable to yours use granite in the kitchen and/or bathrooms, a granite upgrade will probably not warrant you the return on investment you’re hoping for.
• Finishing a basement may sound like a wise investment, but chances are you won’t be able to up your selling price to accommodate a good return if it exceeds the homes basements in your neighborhood.
• Use a Realtor who is very knowledgeable about the area. They will be able to show you the homes that compare to yours and what upgrades will warrant you the best return. Your will only be able to sell your home for market value. If the improvements you’ve made exceed market value, you will not be able to sell at a higher price.