Upgrades that Add the Most Value to Your Home

Posted on June 7, 2023June 7, 2023 by Living Room Realty

In the world of residential real estate, not all home upgrades are created equal. Whether you’re getting your house ready to sell or you’re planning to stay put for a while and want to know which projects to tackle first – this post is for you!

I often talk with my clients about which home upgrades are best for resale value, or provide the best Return on Investment (ROI). This info is relevant for both home buyers and sellers, as savvy buyers want to know which upgrades are worth the most when they’re searching through listings for their next home.

The most effective strategy to find out this information is to reach out to your trusted real estate professional. Experienced Real Estate Agents will use detailed knowledge of your house and the local housing market to personalize their recommendations for the type of home upgrades that will add the most value to your specific home.

Upgrade vs. Update: this blog post concerns Home Upgrades, not updates. The difference for the purpose of this article is fairly important: while updating your home with fresh paint, clean floors and crisp landscaping will help your home sell for top dollar, they generally won’t affect the starting value of your home as much as larger remodeling projects.

For a more general idea of the types of Home Upgrades that give the best return on investment ROI, consider the following:

Exterior projects – according to the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com), improvements to the exterior of the home have consistently ranked highest in terms of Return on Investment for homeowners. Projects that increase your home’s curb appeal and add value include: garage and front door replacement as well as new siding and windows.

Modest Kitchen Remodel – the key here is to bring the kitchen up to a standard that MOST buyers will appreciate, without going overboard. The reason is fairly straightforward: not every buyer has the same aesthetic as you. Make the kitchen “workable” for most buyers and let them do their own reimagining after they purchase it from you!

Systems Upgrades – upgrades to the systems of the home (including adding or installing new HVAC, overhauling old plumbing and electrical) are less exciting, but I always point these out to my buyers. In the Portland Metro Area, you’ll see homes listed with the Home Energy Score (HES) which helps buyers estimate the monthly utility costs of the home. Energy efficient upgrades should improve the HES score of your home. While the ROI might not be as high for these upgrades, they can provide immediate benefits to you as the homeowner AND should appeal to buyers when you decide to sell.

Structural Upgrades – the structure of the home will sometimes need to be upgraded and can help with resale value. In the rainy Pacific NW, a new tear-off roof, water drainage system and/or seismic upgrades are worth a lot to my buyers! These upgrades are hard to quantify in terms of ROI, but the peace of mind these upgrades provide can be worth their high price tag.

ADU/Additional Structures – adding an additional structure or creating a legal ADU in your home can provide additional income opportunities to you as a homeowner, and in some cases can be used to help a buyer qualify for the loan to purchase your home. If you’re considering this type of home upgrade, be prepared to do your homework by researching your local laws and guidelines for building permits, finding multiple bids for construction costs and be sure to seek advice from your Real Estate Agent throughout the process.

Disclaimer – while the information in this post is meant to be helpful to homeowners, these are mostly my opinions. Ultimately, these opinions can’t be applied to every home in every situation, so it’s best to consult with a Real Estate professional when you’re ready to pick up the sledgehammer!

Sources:

https://www.remodeling.hw.net/cost-vs-value/2022/

Improvements to Make and Enjoy Now That Will Pay Off When You Sell Your Home

Posted on January 17, 2023January 17, 2023 by Living Room Realty

LRR Agent Bobby Curtis lends his expert advice to the Oregonian on remodels and upgrades to make to your home that will increase livability now, and improve resale value down the line. Read the full article HERE.

Portland broker Bobby Curtis can’t count how many times his clients lament making costly home improvements not for themselves but for a new owner to enjoy.

“Why didn’t I do this sooner?” they ask Curtis of Living Room Realty as they are looking at photos of their now-stylish residence readied for the real estate listing.

Don’t wait. There are low- to high-cost ways to upgrade a residential property and increase its livability now that may bump up its value when it’s on the market later.

Another motivation: Putting off repairs could make the situation worse, and perhaps harder, or impossible, to sell the house later.

Unless the structure is a teardown, failing electrical, plumbing, and HVAC systems as well as a bad roof and safety issues have to be repaired to sell a property to a buyer relying on an appraisal to secure a mortgage.

The Oregon Realtors organization also says to repair damaged flooring, water leaks and stains, holes in grout and pet destruction.

A well-maintained home sells faster and for more, say experts.

Then there are enhancements that can have almost their entire expense added to the asking price, if the seller doesn’t overspend.

Rebates for installing energy-saving appliances, double-pane windows and wall insulation lessen upfront costs and the owner benefits from lower monthly utility bills while making a home more appealing to potential buyers.

Replacing an oversized, inefficient oil-fired boiler and furnace in an older home can also free up the basement to be finished as additional living space, increasing the property’s market value and widening its appeal, says Curtis.

Since the pandemic started, home shoppers have been keen on having flexible spaces that can be a work, craft, hobby or wellness area, says Curtis, who calls having a bonus room “the best seller.”

If an owner has the resources, converting underused space in a house into an in-law apartment for extended family members or a lower level with an exterior door into a rentable accessory dwelling unit (ADU) can be rewarding now and enticing to a future buyer.

Biggest rewards

Research shows that sellers get the most bang for their renovation bucks by focusing on the kitchen, bathrooms and curb appeal with a handsome front door and low-maintenance landscaping.

The front yard is the first impression a home shopper sees after liking the property’s online photos and description, says Curtis.

The biggest payoff, however, now and in the future, comes at little cost but big effort: Decluttering.

Clearing floor space, shelves and closets so a potential buyer can visualize living there is key. Current residents also benefit from putting or giving away unneeded objects.

Studies show removing clutter and other distractions promotes creativity and a feeling of being in control, and orderly environments are relaxing and can reduce dust that irritates allergies.

If you plan to move sometime, it’s helpful to start boxing and storing excess objects now, says Curtis.

“Most people can move a third of their possessions to a corner of the garage and still have a livable, workable home,” says Curtis. “Many people instantly see this as an improvement and wonder why they didn’t do it years earlier.”

Timeless upgrades

Real estate agents, interior designers, home stagers and professional organizers can be consulted long before an owner lists a property.

If you plan to move sometime, it’s helpful to start boxing and storing excess objects now, says Curtis.

Real estate agents, interior designers, home stagers and professional organizers can be consulted long before an owner lists a property.

One of his recent listings, which he describes as a “truly unique, tasteful and bold” renovated midcentury modern house in Northwest Portland’s Kings Heights neighborhood, received an accepted offer in four days.

“It’s just not one of those renovations, but it was thoughtful and extensive,” he says.

Trends with wide appeal

Erin Davis of Mosaik Design and Remodeling in Portland says kitchens and bathrooms are the most used spaces in a home and the most sought-after remodeling projects.

“Staying with quality materials and a timeless style is a safe bet that both you and potential buyers down the road will enjoy,” she says.

A custom designed, high-end large kitchen can cost $50,000 or more, according to a 2023 study by Houzz, an online resource with content by more than 3 million home remodeling and design professionals.

Designers with the National Kitchen & Bath Association can recommend alternatives to high-priced products and materials for the latest looks are also available at home improvement stores in standard sizes and popular colors.

Some owners make improvements in phases to stay within a budget, and do some of the work themselves.

Davis has found that these looks appeal to homeowners and home shoppers:

Kitchen

Quartz Countertops
Full height backsplash
Quality flooring materials
High-end kitchen cabinetry

Bathroom

Tile flooring
Zero threshold shower
Good lighting

Market Ready Transformation

Posted on April 27, 2022 by Andy Meeks

This was a fun project in that I was able to put on my project management hat to help prep this house for market. My clients (and friends) moved away from Oregon to the east coast a few years ago and their first-ever home in Portsmouth became a rental property. When they decided last year to consolidate and sell this home, they reached out to me to assist.

There was a lot of work that was needed to bring it to market looking its best. I evaluated the home with them through several video meetings and offered a list of suggested upgrades and improvements that would help maximize its resale value. We started the rehab process in early December, and we finally finished that process at the end of February, just in time for our early March listing date goal.

The scope of work included all new interior paint, new flooring throughout the home, new first-floor light fixtures, and new countertops in the kitchen. I worked with trusted industry professionals to provide my clients various finish options and price points, and they trusted me to make the final decisions.

Other work included roof cleaning, furnace servicing, front door paint, exterior powerwash of the house and concrete, exterior window cleaning, landscaping, and a deep interior clean. These are the less sexy items, but really do make a huge difference in how the house is received, and perceived, by potential homebuyers. (Of course, we had it professionally staged and photographed as the key finishing touches.)

In the end, the goal is to get as many eyes on the house and people inside to get a feel for the home and encourage as many offers as possible. We went pending in just four days and sold above the listing price, which was already above our original goal from December. And my clients never had to set foot in Oregon.

I love the trust and teamwork that I develop with my clients and, as Hannibal Smith of A-Team fame always said, “I love it when a plan comes together!”