As promised from last week it is time to explain what are things that you can add an actual value to your home verse others in your area, and what items are more of a feature that doesn't necessarily add "value" to your home. Keep in mind when I refer to the word "value" in this blog it is strictly about the price of your home or the ability to have a higher price because of the "valued" item.
Let me start by giving you a quick overview of what things add "Value" to your home:
- Renovations Or New Construction
- Legal Add-Ons (EX: Basement, Extensions, Dormers)
- Bulkhead/Private Beach/Docking Rights
- Property Size
- Number Of Rooms (EX:Bedrooms, Baths)
- Heating System Upgrades Or Conversions
Now let's talk about features, you might be surprised even if you are a buyer what some are:
- Pools, Heated Pools, Sauna's, Hot Tubs
- 3 Car or more garage
- In Ground Sprinklers, Brick Pavers, Lighting, Elaborate Fencing & Gardens
- Fireplaces, Hi-End Appliances, Wood Floors, Imported Flooring
There are of course some exceptions where the rules will change slightly, it is not always as simple as adding and subtracting based on this "value", "feature" criteria because each homes value is based on the comparable homes in the area.
Here are some examples:
- When comparing homes in a specific area if a home has bulkhead or docking rights, you can not add an additional value above those in the same homes in the area. If the surrounding homes have bulkhead, and yours only has water view you can not take the added value of those that have bulkhead there will be a slight difference in the "value".
- There is also an interesting twist with bulkhead, you can add value for someone who has recently upgraded the docking space, this is a big question for homeowners who are trying to decide to repair or leave bulkhead as is after the devastation of Hurricane Sandy.
- If your comparing homes in an area that the majority do not have basements/garage you can not reduce the value of a home because it also does not although you still can add value for it. This is common in certain areas of the village of Babylon where basements are not common South of Montauk.
- Renovated and new construction homes are homes where the all the items are truly new and never been used. New construction will rarely ever be comparable to a home that was updated 10 years ago, you must add value to the new construction build but you can not penalize an updated home for not being new construction if the majority of the homes in the area were built or updated in earlier years.
When it comes to updating your home many homeowners wonder how far should they go with the renovations so they don't "lose" money when they decide to sell. The best rule of thumb is to keep the kitchen and bathrooms up to date by using common items not necessarily renovating every time a new appliance or building material comes onto the market.
It is always good idea keep an eye on your market and your neighbors even when your not selling. Even reading the sold section of your local online paper this will give you a good idea of the condition and upgrades that homes in your area have done, and you can invest wisely in upgrades for your home!