Millennials might be delaying decisions like marriage and kids, however, new research indicates that the current generation is slowly but surely warming up to the idea of home ownership. As a matter of fact, findings from a recent Demand Institute survey indicate that around 75% of millennials regard homeownership as an important long-term goal. The Institute also predicts that millennials will spend roughly $1.6 trillion by 2020, seeing how 60% of them plan to make a move from renting to owning in the next five years.
As you can clearly see, the housing market is gradually recovering from the housing bubble. All things considered, I think it’s safe to say that things are looking good for real estate investors in the next couple of years. If you’re a first-year realtor, it can be easy to lose enthusiasm when you encounter your first major roadblock. Reselling a property isn’t black and white, and a lot of things factor into how much a property is worth, like location, the school district, the number of bathrooms and bedrooms, etc. But there are things that can decrease the value of a property, without you even realizing.
1. INSTALLING A SWIMMING POOL
You’re probably thinking, everyone loves a nice pool, right? Well, everyone except the people who have to maintain it on a regular basis. According to home improvement website Fixr, a low-cost pool can cost you around $22,000 to install, and the maintenance can cost anywhere from $2,000 to $4,000 annually, depending on the size of the pool. While many people believe that a pool installation will result in a higher asking price, that’s just not the case. From fences and vacuums to resurfacing every two years, a swimming pool can be nothing more than an expensive nuisance and can actually lower the value.
2. TOO MUCH REMODELING
In addition to unnecessary installments, many realtors spend a lot of money remodeling their properties. Now, for instance, a leaky roof is a major turnoff for potential buyers and should be fixed right away. But if you want to get the most out of your renovation dollars, you should definitely stay away from the bathroom. Professional bathroom remodels are pricey, and according to the National Association of the Remodeling Industry, once you sell the house, you’ll get back only around 50% of what you spent.
3. LOW CURB APPEAL
When you pull up to someone’s house, the yard is usually one of the first things that catches your eye, so it’s not surprising why strong curb appeal is so important. According to the National Association of Realtors, curb appeal sells nearly 50% of houses on the market. An old fence can significantly affect the value, but you should pay special attention to landscaping. Just like cars and clothes, plants come and go in trends, so looking into what’s currently popular is certainly worth your time. In general, people tend to avoid quick-growing, high-maintenance plants, which is why realtors hire companies like Artificial Grass Warrington to install child-friendly fake grass and help them with the overall yard design.
4. INTERIOR AESTHETICS
If you manage to draw in potential buyers into the house, they’ll quickly start noticing minor details like the lighting, furniture and carpeting. All of these issues are easily remedied, and fresh paint job is good idea – but don’t overboard, because odd colors and wallpapers are likely to look a headache, rather than a selling point for your potential buyers. And even small things can sometimes have a huge impact, for instance, according to a recent Zillow Digs report, a sliding door can help a house fly off the market 57 days faster and raise the price by more than 13%.
CONCLUSION
While real estate investing offers the potential for remarkable returns, you have to keep in mind that some people have bankrupted themselves investing. Some repair and renovations will pay off and some will not, so you have to consider both what you can do to increase the value, and what not to do to decrease it.
– Courtesy of RealtyTimes.com
Published on 2016-10-10 07:25:26
