SALEABLE VS VALUABLE: WHAT MAKES MY HOME WORTH MORE?

So the time has come for you to sell your home. For just about any seller the first thing to figure out is how much can I get for my home in today's market. Part of this depends on the seller's individual situation. Some sellers may not be in a hurry to sell, in which case they can afford to seek a higher price for their home and wait for the right buyer. On the other hand a seller may have an urgent need to sell their home within a specific period of time. They are often referred to as a "motivated seller" and because of this they are typically much more flexible in terms of their pricing expectations.

As a seller no matter your situation, it is important to understand how to price your home. If you are working with a REALTOR or a real estate agent, they should provide you with a detailed market analysis. This will explain exactly what price range in which your home can be expected to sell based on current market conditions.

Many sellers are unclear or have a misunderstanding as to what makes their home more valuable as opposed to things that simply make the home more saleable. As a homeowner of course you are going to constantly make changes and improvements to your property that are in line with your needs and desires. However this may or may not equate to a larger price tag when its time to sell.

So....how do you know the difference?

I tell my clients to think about the last time they got rid of a vehicle. When you go to trade in your car for a new one, the dealer is not going to care about the fact that you paid to have the windows tinted, added a custom CD player and that you put those expensive special performance tires on the car a month ago. All they are primarily concerned with is the age of the car and the mileage. In a lot of ways the market views your home the same way a dealer views that used car. Whenever you make an improvement or "upgrade" to your home it is either going to be an investment or a personal touch. Investments equal a return. A personal touch is just that, it is for your enjoyment during your time in the home. While they may be great selling points do not anticipate getting your money back when determining a selling price for your home. 

Generally speaking anything that adds usable space or functionality to your home adds value to the bottom line. Examples include an addition to the home, finishing a basement, or converting an area of unused space into a small bedroom or bathroom. However, I'm sorry to tell you but the in ground swimming pool, having the living room wired for surround sound, and those heated floors in the bathroom are not necessarily going to get buyers through the door if the house down the street with the same floor plan is listed for twenty thousand dollars less.

To sum it up. If you plan to make your home the most expensive in the neighborhood by way of features and upgrades then plan on being there for a while!