Don’t OVER improve your home!
Tip 1. Are you the nicest house on the block?! Careful with major improvements as you may not see that money come back to you when you go to resell your real estate investment. The nicest house on the block takes a hit in value because of the surrounding real estate.
The opposite goes for the most modest house on your block. You stand a better chance of recouping your remodeling expenses if your piece of real estate is getting a boost just by being amongst houses that are say – bigger etc.
Tip 2. Refer to tip 1. Once you know where your real estate lands in that spectrum – follow the next tips.
Tip 3. Pair back your vision and stick to function.
- What is the most important factor/s in your improvement?
- More flow or more visibility
- Efficiency – new windows, appliances and exterior doors can lower utility costs
- Got a fireplace?
- Fireboxes and their chimneys are a great way to let your precious heat out during winter – Get a gas/pellet stove insert!
Tip 4. Protect your equity!
- A new roof is a hard pill to swallow but it will do much more to protect your real estate investment than a remodeled kitchen.
- Finished basement?
- How much of your real estate around your foundation is exposed earth?
- What condition are your rain gutters? Does the roof line over shoot your gutters?
- Does your lot slope to your foundation anywhere?
Improve the quality of your life by improving the function of your home – ALL WHILE expanding your real estate’s equity!
Remember – Equity is the amount of money between what you owe on your mortgage and what your real estate will sell for.
Grow it! Don’t spend it. Remodel accordingly. 😉