Murfreesboro Real Estate

Improvements That May Not Pay Off:

• Over-improvements.  As good rule of thumb, add the costs of your proposed remodeling project to the current market value estimate of your home.  If the total is more than 20% over the neighboring home values, you can not expect to recoup your remodeling expenses when you sell.  Tip: To be sure your improvements are good investments, ask me for a free comparative market analysis (CMA) to determine your homes’ pricing range.
• High Cost, Single Use Improvements:  It’s certainly pleasant to have a beautiful, $40,000 in-ground pool to plunge into whenever the spirit moves you, and a tennis court on the back corner of your property would allow you to play without signing up for a court.  But not every Buyer wants such luxuries, and some won’t even look to buy such homes due to high maintenance cost feature.  By limiting the number of Buyers that would interested in these features, you are likely to find yourself waiting longer to find buyers willing to pay the extra price that would allow you to recover “some” of your investment.  The typical appraiser in Middle Tennessee might only adjust 1/4th to 1/3rd of the actual cost for the improvement for an in-ground pool for example.  Above ground pools most often receive no adjustment.
• Flamboyant Architecture.  You may yearn for the gingerbread that used to embellish your grandparents old Victorian home, or the giant columns that graced Tara in “Gone with the Wind” even though you live in a basic ranch style house.  You might also be crazy about pink stucco or really like thatched roofs.  Fine, but understand improvement that aren’t compatible with the way the rest of your house looks will make it harder to find a buyer later. Tip: Look for ways to gratify your heart’s desires without clashing with your house.  For example, use gingerbread embellishments on the gazebo or playhouse in the backyard instead of your house.
• Inappropriate Interior Features.  It’s OK for personal preferences to displace resale sense but do remember that time on the market and pricing is adversely affected if you do too much “individualizing”.  That baroque chandelier in the dining room, the do-it-yourself forest landscape on the kitchen wall or UT orange colored walls in your Man Cave may be very appealing to you but not to the Alabama football alumnus!
• Elaborate Landscaping.  Your “dreamscape” may be viewed by others as an undesired, high expense, nightmare to maintain.  Such as: flower beds and shrubbery that require constant attention, or even professional care, pathways of pebbles through which weeds peek, formal garden plots that look disreputable when nature insists on making “growing” things sprawl or picket fences that need frequent repainting.  Also, beware, the gorgeous front, sides and back of property landscaping improvements that may cost you $40,000, may only be appraiser adjusted for $8-10,000 value.  Tip: Good landscaping adds much to a homes value, particularly if you are in general conformity with the neighborhood.  But plan and plant with future resale in mind.

Whether you are considering remodeling worn out surroundings or wanting to enlarges your home for a growing family, it is wise to consider that home improvements you choose to do will not only pay off in the recovery of the money that you spend but also that projects will help you get a better price when and if you sell in the future.  Keep in mind, however, that even renovations that increase the value of your home and enable you to achieve a higher dollar amount when you sell, you will likely not recover 100% of the cost of the project.

Improvements That Have Highest Pay Off

• Kitchen Renovations.  New flooring, cabinets, countertops and appliances can be costly but could be worth it from a “Value added” consideration; 80-90% return on investment (ROI) in most studies; one goes as high as up to 110%.  Keep in mind that these value added estimates are for a maximum period of 5 years from he time of remodeling to resale.  Tip: Best bets are to use light neutral colors, plenty of cabinets and counter space, new light fixtures and energy efficient appliances.
• Bathroom Additions.  Another bath may not only be a convenience, it may sharply enhance the sale possibilities of your home.  A second bathroom onto a 1 or 1.5 bath house can yield more that 100-169% of resale values.  Studies range from 80-115% as a values added consideration for: new floors, fixtures, relocating plumbing, structural changes, good lighting and large mirrors.  Tip: Buyers will zero in on anything that looks like mold or mildew, including aging grout between tiles or caulking around the tub or sink.  Neutral colors still appeal to many buyers today and they are looking for upgrades like jetted tubs or a heated floor when they step out onto cold tile after stepping out of the tub or shower.
• Room Additions.  Adding a new room can pay off, particularly if the addition puts your home in the same class as others in your neighborhood.  Family rooms, sun rooms and master suites are hot items now.  In many cases, a family room or master suite will add more value to a home vs. adding an office or a 4th bedroom.  A second master suite/ in-law or teen suite can add considerable value as well.  Studies reflect value added: 50-100%.  Tip: Choose materials and styles that blend with the existing house; consider traffic flow and accessibility to other rooms.
• Repainted Exterior and Modest Landscaping:  Repainting the exterior of your home may be the cheapest and best way to grab buyers attention and see a profit.  Value added: 40-60%.  Simply adding fresh mulch, eliminating weeds in the yard, cutting back overgrown trees and shrubs (or adding shrubs to the front yard foundation area where none previously existed), planting attractive flowers and maintaining the lawn can average a 100% ROI!
• Other Improvements: Appraisers in Murfreesboro, TN are likely to make market adjustments for:

1. Fireplace: $1,500-$2,000
2. Short Asphalt Driveway vs. Gravel: $1,500-$2,000 or more for larger or double drives.  Concrete drives are adjusted even more!
3. One Car vs. Two Car Garage: $6,000-$10,000 depending upon size and whether it is brick or vinyl exterior.
4. Fencing: A large, wooden privacy fence would likely be adjusted somewhat in the $2,000-$4,000 range.
5. Patios and Decks:  A patio would be less than a deck, from $250-$300 for a patio vs. a deck from $1,000-$1,500 (depending upon size and condition).

Keep your eyes peeled for future and further blogs on What Remolding Mistakes You Absolutely Must Avoid!