Don’t Get Caught in These Common Value Traps

Filed under: Temecula Real Estate

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You have the desire to upgrade your home and maximize the value, but it is important to understand that some home upgrades might not necessarily be a good investment. By learning a few effective strategies, you can avoid two common mistakes that people make: over-improving the home, or investing money that you won’t be able to get back out when you sell later.

Home Improvement Factors to Consider

One of the first things that you need to look at is the neighborhood where you are located. What are the high-end homes selling for? If you know that there is only about $25,000 difference between the average price and the high-end price, then it doesn’t make sense to spend $50,000 on upgrades. Overspending could make it very difficult to recover the money since it will be higher than the averages in the area.

For example, if your house is worth $400,000 and you know that the highest priced comparable property in the area sold for $450,000, then it might not be a good idea to add $100,000 of upgrades on your property.

Marketing to the Masses

Choose upgrades that are appealing to the masses. What would the average buyer want to see in the home? Anything that is unique to your style may not lend itself to giving you top-dollar pricing when you decide to sell.

For example, you might love French décor, but buyers might see these details as a negative if the style isn’t popular in the area. Other examples might include a dance studio in the basement or a swimming pool in the backyard. Not everyone wants these features in the home, so you might increase your spending without boosting the value of the property.

If you choose some of these unique features, make sure that a conversion is possible to make it a useful living space. If you want the dance studio in the basement, look for ways that it can later be converted into a bedroom or movie room.

With a few simple tricks, you can upgrade the value of your Temecula home and maximize your equity. Call, text, or email me to learn more about this real estate market! I am here to help with anything that you need: (951) 473-0390 or [email protected]