Updating Your Home to Get the Biggest Bang for Your Buck!

At an open house this weekend, I had many people that visited tell me they wanted to update their older home before they put it on the market so they could get the most “bang for their buck”. I thought this would be a good time to share the “inside scoop” of what many home buyers seem to be looking for in the decor of the home they purchase. Keep in mind that people are all unique and what is pleasing to one person, certainly may not be pleasing to another. That being said, there are colors and styles that appeal to a larger portion of the population than others. This is why if you go into ten different model homes, most of them will have similar color themes and styles.  It may not be what you would have in the home you are living in, but when putting your home on the market, it is in your best interest to appeal to the masses.

I’ve noticed a huge trend sweeping Colorado Springs right now. Investors have been gobbling up many of the Short Sells and Foreclosures that have been flooding the market, completely updating the homes with paint inside and out, new flooring throughout, new counters in the kitchen and bathrooms as well as new modern backsplashes that give an older kitchen a modern look and then selling the homes for a nice profit. While you can’t blame someone for making an honest living, this makes it difficult for a home that has not been updated able to compete with these “Fix n Flip” houses. That being said, it is more important than ever to invest a little money and elbow grease in your home so that buyers can see its full potential. 

You should keep in mind while you are planning and budgeting to update your home, there is something called Point of Diminishing Return, which put simply, means that a you can only raise the value and price of your home to a certain degree, regardless of how much money you spend on updates, at a certain point you will be putting more money into a home than you may be able to get back out of it. This is because much of your home's value will depend on things you can’t change, such as the location, age, housing market, and many other factors. Obviously, this rule is not always as cut and dry, such as when you are updating a very custom home in a neighborhood where the home prices may differ from each other by hundreds of thousands of dollars. But when speaking about a typical Colorado Springs neighborhood track home, there is a definite Point of Diminishing Return. You certainly don’t want to put more money into your home than you will be able to recoup and hopefully make a profit from. The key is to find the sweet spot in the areas that pack the biggest punch to help it stand apart from the other homes for sale in your neighborhood. Furthermore, doing some improvements may mean the difference between selling your home in a reasonable amount of time, or taking much, much longer to sell and with many price drops. During the planning and budgeting phase is also a good time to have a Competitive Market Analysis (CMA) done for your home. A CMA is research that is done on homes in the area that are for sale and that have sold in the last few months to give a clearer picture of the price range you can expect your home to sell for. The Colorado Springs home market changes rapidly, so it is important to see what your home is worth currently, rather than what someone quoted you six months or a year ago.

Updates that pack a big punch:

• A Fresh Coat of Neutral Paint Through-out Your Home. Your space will appear much larger if you can resist the urge to paint each room a completely different color. A light tan color with white moldings and doors is ideal.

• New Flooring- Next to Paint color, the biggest surface in your home is your floors and even though it is a significant investment, it packs a huge punch in the presentation of your home. Avoid colors that are too dark OR too light. An economical alternative to tile on the floor in the kitchen and bathroom is a new vinyl flooring product that looks and feels just like tile. It even has grooves for the "grout". Some of it is such high quality that you have to really feel it to know the difference. The big price savings in this is the labor involved with tile rather than vinyl flooring. Remember; keep it neutral and not too dark.

• Update the bathrooms and kitchen without completely replacing everything! -There are ways to update your kitchen without spending a fortune. If you aren’t willing to shell out the big bucks for the expensive granite that buyers jump for joy over, even replacing an old outdated Formica countertop with the new modern version that has the look of granite is an economical choice. Top it with a coordinating glass tile backsplash and you’ve got a customized look that will do wonders for you kitchen without breaking the bank. If your bathroom and kitchen cabinets are old and outdated, but still structurally sound, gently sand off just the gloss, clean thoroughly with a degreaser and either paint them white or use a good gel stain to make them a popular Java or Espresso color then ad brushed nickel door hinges, knobs, and pulls -don't skimp on the pulls and hinges as these really do make a big difference and are noticed by home buyers.

• Replace Brass Light Fixtures with Brushed Nickel -Lowes and Home Depot often have clearance fixtures that will do the trick for a modest price.

If you're not ready, willing, or able to do all of the suggested updates, just doing one or two of these can make a difference. There are also things that you can do to make your home show better that won't cost you a penny, such as cleaning, de-cluttering, and getting rid of excess furniture. Rooms with too much furniture or furniture that is too large for the space makes the room feel smaller than it actually is. Smell is also very important while your home is on the market. Oders from smoke, pets, or garbage are big turn-offs for buyers.

If you are planning on selling your home in the Colorado Springs area, or are still in the planning stage, give me a call (719) 357-1023 or email me! I would be happy to provide you with a free Competitive Home Analysis, and come to your home to give you some ideas on preparing for the housing market. Mention my blog and I will tell you how I can save you money on commission while still marketing your home at the highest level.