Recently, there has been a lot of discussion about whether or not we’re headed for another housing bubble. Not again, you might say, and let me assuage your fears for a moment. According to Trulia’s Chief Economist, Jed Kolko, we’re in a far different situation than we were in the mid-2000s when we experienced a true burst bubble. It was much easier to get credit and homes were way overvalued. In the case of today’s market, although homes have risen in price by upwards of 40% in the last year, credit isn’t as easily attainable and homes aren’t overvalued. In addition, construction is down. Therefore, the market is still strong for buyers.
If you have been waiting to sell your home for when the market was a little more stable, you have entered that time. Although homes might be a tad undervalued in some markets, buyer confidence is high and the job market only continues to improve (we’re closing in on 7%). But there is, of course, the question of whether or not you can sell your home and, if so, for a good price. I’m here to say yes. Now is the time to make those renovations to get your home ready to be put on the market. Not sure where to start? Here are three of the best ways to add value to your home:
Bathroom: One of the first things people look at when shopping for a home is the bathroom. Sure, you can have a nice kitchen, but that’s easy as that’s out in the open. A bathroom can be the true litmus test for whether or not a potential buyer thinks you have taken care of your home. Common areas for renovation are tile replacement, redone bathroom lighting, and double sink vanity installation. One of the most common costs for a new home is a bathroom renovation, and a home that doesn’t need one will be looked at favorably.
Roof Replacement: Now that we’re in the winter months, you’ll probably see fliers and advertisements about roof repair. If you live in the northern part of the country like I do, you know the dangers of heavy snow on a roof. Notwithstanding snow, wear and tear can wreak havoc on a roof over time. If you have had your roof for over five years, get it checked. Over ten years, and you might want to look at a roof replacement. Although an expensive investment, it could mean the difference between whether or not your home exits the market with a sale.
Pool: As it’s the season, I would be hard pressed not to mention how Christmas Vacation is one of my favorite movies, and one of the funniest parts is Clark’s tirade after he finds out that he can’t buy his family a pool with his bonus check. If you had your home on the market and it had a pool, Clark Griswold would be more likely to buy it. A pool is an instant attention-grabber and can add thousands of dollars to your home value. Plus, in the meantime before your sale, it’s a great way to pass the time!
Image Source: Shutterstock/Andy Dean Photography
Tim Jackson is a homeowner and father of two. He and his family live in Delaware and have no intention of moving just yet.