Make worthwhile investments in your home.
According to the financial dictionary, investment is defined as the act of placing capital into a project or business with intent making a profit on the initial placing of capital. But many homeowners misunderstand this definition. They mistakenly think that if they put a lot of money into their home that automatically means they’ll get that money back and more when they sell.
Many homeowners mistakenly think that if they put a lot of money into their home that automatically means they’ll get that money back and more when they sell.
Just because you’re putting money into home improvements doesn’t mean your investments are going to bring you a return. That being said, you’re more likely to get ROI (return on investment) if you invest in improvements that homebuyers tend to want. Here are some ways you can invest wisely back into your home.
1. Get rid of popcorn ceilings
Believe it or not, popcorn and textured ceilings were popular back in the ’60s and ’70s! They were easy to install and they hid flaws. The trend has definitely passed, though, and many homebuyers are attracted to homes that don’t have textured ceilings. If you want to remove your popcorn ceilings yourself, the process is fairly simple and is one of cheapest ways to update your home.
2. Replace furnace/HVAC unit
Replacing your furnace/HVAC unit could make your home more attractive to buyers down the road. If you’re moving in the near future, however, you may want to think twice about this investment, because ROI on a furnance/HVAC unit is not guaranteed. Nicole Curtis, host of DIY Network’s Rehab Addict explains,
“Typically, you need at least five years to reap the benefits from the cost savings vs. the cost of the unit and installation. Of course, if yours is old and not working, go ahead and replace it. [But] I just had a real estate client that was shocked that his new $15,000 furnace would not bring him a $15,000 increase in price.”
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3. Paint
Painting walls and ceilings is a somewhat boring investment, but most homes could use a fresh coat of paint. Compared to a lot of other updates, it’s a relatively cheap improvement too. CBS News’ Aimee Picchi says just be sure to pick colors that appeal to a variety of people, as some colors can actually turn away buyers.
4. Reveal and re-finish hardwood floors
Hardwood floors have become incredibly popular, and can potentially add tremendous value to your home. Find out if your home has authentic hardwood floors and see if they can be restored. This affordable investment is worth time and effort.
5. Remove wallpaper
Another tedious investment… but buyers will love you for it! Very few homebuyers want to buy a home with wallpaper these days. Each person’s taste differs greatly, and the amount of work it takes to remove unwanted wallpaper is such a hassle. Can you imagine how disappointing it would be to find out a buyer loved everything about your home except the wallpaper?
Talk to your realtor about other ways to invest smart in your home.
In conclusion, if you’re investing in preparation to sell, talk to your realtor first. The whole goal of investing money, time, and energy into your home is to be able to sell quickly and get top dollar for your home. As with any investment, there’s some risk involved and there are no guarantees. Understanding the value of one investment over another could save (and quite possibly make) you money.
