In the last year, home upgrades have been on people’s minds in Farmington Hills, Michigan and across the country. One of the most popular areas people have focused on is the backyard, either with an updated outdoor kitchen, more space for relaxing, or even, a hot tub. In addition to the added relaxation benefits of a hot tub, homeowners can also see a bonus of adding value to their homes. In a recent report from the real estate experts at HomeLight, agents across the country reported that the value of an inground hot tub increased by more than 70 percent since the arrival of Covid-19. On average, agents estimated that before Covid-19, a house with an inground hot tub sold for about $4,000 more than one without, while post vaccine today, buyers will pay nearly $7,000. Let’s take a closer look at how the value of hot tubs has changed in the Midwest during the last year.
The value of a hot tub
Post-vaccine, the Midwest saw a value increase of 74 percent for inground hot tubs, from $1,890 to $3,899. Who can deny the appeal of a hot tub all year round, even in the winter, turning the water temperature up to a toasty 102 degrees. Moreover, a spa can be a plus in the summer too, as HomeLight data shows that if your pool has a hot tub, you’ll get nearly $7,000 more at sale time. Some people opted for above ground options, not wanting to invest in the more expensive inground spas. And the value of a freestanding hot tub has gone up as well when selling a home, to 118 percent since before Covid-19 from $708 to more than $1,500.
But will you recoup the costs?
In the midst of Covid-19, people were longing for more luxury at home, leading to the addition of spas in all forms. But will you get a return on your investment? The answer depends on your market and the type of hot tub you’ve added. Keep in mind that freestanding hot tubs are considered personal property and aren’t factored into the overall value of a home. That said, buyers can offer to pay sellers for it separately, and data suggests that buyers might be willing to pay extra for this bonus feature. According to HomeAdvisor, entry-level hot tubs cost between $2,000 and $6,000, while mid-level ones cost $4,000 to $8,000. If you’re selling an entry-level tub in great condition, that means you could recoup your costs or get close to them.
Is that hot tub worth the investment? With so many factors to weigh, it’s hard to say for sure and your real estate agent may be your best source to determine how much that hot tub is really worth. However, there is no doubt that extra relaxation amenities are a plus for home buyers in the post-Covid-19 world, no matter what type of hot tub you opted for. Call me or contact me to find the perfect home with an inground hot tub for you and your family.
Home Improvements to Avoid When Selling Your House
Home improvements a bang for your buck? Don’t go out just yet with your tool kit, expecting those YouTube DIY tricks to work out perfect. It rarely happens!
The problem is many sellers believe that taking on home improvement projects themselves will help them save on repairs and insurance. When you are targeting something major, first think about how much the repair or renovation will impact the value of your home for sale on Oakland County, Michigan.
Some projects yield high ROIs, which are easy to do on your own such as painting the interior, while others are difficult such as roof repairs and extensive plumbing installations. In the end, you might be looking at a costlier repair than the small patch that could have been fixed for $100 by a professional.
Even if you are making a new addition to the house, think long and hard before doing so. Do your research and make sure that the features you’re planning to add to your house are present in houses across the neighborhood. If they’re not, and you still proceed with your plans, you could potentially lose all your money.
Home Improvements May Wind Up Costing You In The Long Run
Here are a few such features that require extensive research before being added to mitigate risks of losses:
1. Swimming Pools
Unless the buyer demands a swimming pool and agrees to your asking price without demanding insurance for repairs, this improvement might work in your favor. An in-ground swimming pool can cost somewhere between $20,000 and $60,000. It might sound surprising but many rational homebuyers and investors might not prefer swimming pools due to the high maintenance costs involved.
Beautiful, right? High ROI? No! A sunroom does not even guarantee a 60% ROI. You will be better off building a deck in the backyard and furnishing it with chic furniture. The ROI on a deck is much higher and is an improvement that is loved by all buyers, especially those who have a big family.
3. Home Office
A home office is yet another feature you need to think about twice. You can never be sure that the next owner would be an entrepreneur or would use the space to work from home. A home office costs around $20,000 and rarely pays even half of the value on your home for sale on Oakland County, Michigan.
If you already have a garage, then don’t add extra space to it. The buyer might not want the extra space and can refuse the offer on the basis of it. Since, you will be adding a large margin to the asking price; buyers might not find it realistic.
5. Master Suite
This is an improvement you need to think on when you buy the house. How long do you plan to live in the house? More than 20 years? No? Then, you better stay away from this improvement. Master suit only promise a 40% on the sale of your house.
Keep the improvements to a minimum and limit them to the kitchen and bathroom because these are two rooms that are used the most. Before putting your home for sale on Oakland County, Michigan on the market, why not get it appraised by experts. Visit Homes2MoveYou now and get yourself a real estate agent like myself to help you every step of the way.
If you’re a homeowner, you know the to-do list is never ending. And, if you’re a buyer, you’ll know soon enough. That’s because, owning a home means maintaining a home. Proof of that can be seen in the fifth annual LightStream Home Improvement Survey. According to the results, 58 percent of surveyed homeowners say they’re planning to spend money on home improvement projects in 2018. And the number who said they plan on spending $35,000 or more has doubled from last year. But though there are more homeowners planning projects this year, the list of projects hasn’t changed all that much. Once again, outdoor upgrades remain the most popular, with decks, patios, and landscape projects topping the list. Kitchen and bathroom remodels, of course, also rank high, coming second and third on Americans’ home improvement, to-do list. So how are these homeowners planning on paying for all these upgrades and renovations? Well, the vast majority said they were paying for their projects out of savings. However, another way homeowners are saving on their home improvement bills is by doing, at least, some of the work themselves. Read More Here.
Home Improvement Mistakes To Avoid
Here are seven of the most common mistakes people make when they begin a remodeling project. Once you’re aware of them, you can work to avoid making the same mistakes on your own projects.
Don’t rush into any remodeling project. Think it through, decide what your priorities will be for the project, and come up with a good plan that you can follow. Revise this plan until it seems rock solid, and all your goals for the project will be met. Price out the work, and then try like crazy to stick to your plan, and your pricing. Of course, you should always expect the unexpected, but if you have a solid, realistic plan, hopefully that’ll keep the unexpected at a minimum.
Avoid choosing just any contractor
Don’t rush to choose a contractor, or choose the first one you talk to in order to get the work underway. Hey, we understand you’re excited at the prospect of beginning your remodeling project, but you could be making a costly mistake in both time and money if you don’t do your research first when it comes to a contractor. Talk to several contractors, and check each reference. Talk to people in the town you live in that have had remodeling done in the past year or so. Ask for referrals. Check with your local Better Business Bureau to see if the contractors have complaints (and take these complaints with a grain of salt). Be absolutely certain that the contractor you choose has insurance in place. Choose a contractor that you like as a person, and that you feel comfortable communicating with. And of course, get everything in writing.
Avoid undershooting your budget
Be realistic about the budget you create for the project. Leave yourself quite a bit of wiggle room when it comes to dollar amounts allocated for specific parts of the project. Whatever budget you already have in mind – you should increase by 20% in order to give yourself the necessary cushion if something doesn’t go as planned and goes over budget. There are things you just can’t foresee, and those are the things that will break the bank if you don’t anticipate them ahead of time. The last thing you need is to have to skimp on important parts of your remodeling project because something happened that used up funds.
Avoid being too cheap
You are not going to “save” money in a remodeling project, so get it right out of your head. This isn’t the time to nickel and dime your way around spending money. Consider the future appeal of the work to be done and how it might affect the selling price of your home. Consider the enjoyment with which you’ll enjoy the remodel if it’s done properly without trying to penny-pinch. This also comes into play for do-it-yourselfers who think that they can save money by doing the remodeling themselves. If it’s something you are capable of and skilled enough to do correctly, then go for it! But if it’s not, you’ll spend more money fixing it than you would have by simply hiring a professional in the first place.
Avoid breaking the bank on materials
Over-spending on materials is a no-no. Again, this happens largely because of lack of planning, and the homeowner feeling rushed to get the job done. So plan ahead – look for sales at home improvement stores, and definitely keep your eyes peeled at garage sales, moving sales, flea markets, and estate sales for materials you may need. Also look for salvage stores, and call around to different materials companies who may offer you “seconds” that they can’t use or sell at a deep discount. Note that this isn’t the same as the penny-pinching we mentioned in tip number 4. This is simply smart buying of materials that are going to work exactly the same as “brand new” materials would, but at a fraction of the cost.
Avoid being too different
Creating a home that doesn’t harmonize with your neighborhood is always a huge mistake. It’s one thing to be unique, but it’s another thing altogether to lower the neighborhood’s value because you want to be different. Your home’s resale value will be less, as will the resale value of the homes around yours, if your home sticks out like a sore thumb.
Avoid losing sight of your plan
Once you have created your realistic remodeling project plan, stick with that plan. If you begin changing your mind about things, that’s when the price tag starts to go higher and higher. Listen to suggestions from your remodeling team, but always keep your goals for the remodeling project at the forefront of your mind.