Inflation is here, but in the real estate market, inflation hurts the population of people looking to buy their first house. The inflation is also hurting buyers through the rise in mortgage rates, which have doubled over the last 12 months.
So while the cost of the average home has jumped more than 20% year-over-year, the cost to renovate homes has risen. Rather than invest large amounts of renovation dollars into a house, look at the places where those dollars have a better return on investment.
Here are some renovation tips that will add value to your home:
Bathroom: Excluding the kitchen, the bathrooms are key to capturing the interest of a buyer. Often the addition of a half bath to the main floor is a popular improvement for increasing home value. If your bathroom is a few decades behind, consider updating areas such as tub, sink, vanity, toilet, and tile to contemporary designs.
Exterior: As the pandemic has taught us, outdoor spaces are a premium selling feature. One of these features is a fire pit. The quality of the exterior renovations will increase the home’s value.
Basement: At one time, no one considered the basement to be a sales perk, but today they are. By finishing and insulating the basement, it will add instant value to your home’s price. Basements are now in high demand as the younger home buyer seeks to bring physical fitness indoors with a home gym.
Home Office: Since COVID-19, the WFH movement has skyrocketed because many first-time buyers are seeking homes with a dedicated office space. And the more appealing it looks, with the right lighting, sound-proofing, and small designed studio-like suite for video calls, the more buyers will be compelled to pay up for such features.
Kitchen: The kitchen is typically the heart of every home-buying decision. Things like great lighting design, center island, and updated appliances make the decision to buy much smoother. Even better, many buyers want an amped-up home with all the high-tech features like enhanced wi-fi systems.
Outdoor Space: The outdoor deck, patio, and porch have become must-have features when marketing a house. The ability to entertain both indoors and outdoors give a home that 360-degree feeling. Outdoor areas can be highlighted with bright fluffy pillows, new outdoor grill and the right kind of landscaping with low-voltage lighting. Just enough suggestion to make the idea of having friends over for some good times will go a long way.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.