Maintaining your house and increasing its value benefits you and your neighbours. No one wants to live in a neighbourhood where the homes are run down and the yards are overgrown. Keeping your house in good condition inside and outside also adds value to your neighbor’s home and vice-a-versa. Statistics show that homes that are not well maintained lose as much as 10% of their value. Routine maintenance items should be a part of your budget when you own a home. Maintenance costs will run you on average 1% to 3% of the purchase price you paid for the home. Setting aside cash reserves for emergency repairs is also a great idea so you are prepared in case something unexpected breaks and needs to be fixed immediately.
Saving Money While Building House Value
Having a checklist is an easy way to keep up on all the various items that need attention. Routine maintenance will also save you money on expensive system repairs down the road. Your home’s heating and air conditioning systems should be on maintenance contracts. It is also a good idea to have a pest control contract. When you buy your home, you should either ask the seller to purchase a home warranty plan for you or buy one anyway. It’s like an insurance policy. For a simple service call fee, a repair person will come to your home and either repair your home’s systems and appliances or replace items covered under your warranty plan. Read the policy exclusions carefully though so you understand what items are excluded from coverage.
Getting in the habit of fixing minor leaks and caulking around your shower or tub can be done easily and inexpensively and save you money later on. Some homeowners pick certain projects each year like updating a kitchen or a bathroom or painting. Adding upgrades to your home, especially remodeling kitchens and bathrooms is a good way to add value to your house and recoup your investment later when you go to sell. Changing the flooring, getting new carpet, adding wood floors, changing hardware, getting new windows and installing a new roof, if needed, are also recommended improvements. According to real estate experts, even a minor kitchen remodel of approximately $20,000 can allow you to recoup about 78% of your costs. Improvements such as converting an attic space to another bedroom, may allow you to recoup up to 81% of your costs. Improvements and upgrades help you to receive your maximum sales price when you sell your home.
Other Green Improvements and Technology
Homeowners can add value by making their home high tech and green. In today’s technology driven world, having a high speed Internet access is mandatory. Wiring your house for audio, video, security, and communications is at the top of the list of smart improvements. Other improvements such as multi-zone heating and air conditioning systems and programmable thermostats are great ways of turning your home into a technology home. Replacing old appliances with new energy saving appliances and lighting will save you money on your electric bills and increase the value of your home. Making improvements that allow your home to use its natural light, open spaces, use of sustainable materials, using storm water for landscaping and irrigation and other resourceful ways of using water should be high on the list as well. They add value, help your home run efficiently and help the environment.
By routinely maintaining your home each year and putting away cash reserves for emergency repairs, you will be able to keep your home in good working condition and enjoy the upgrades and improvements at the same time. You will also be adding to your house value. So when you do decide to sell your home, you will be able to recoup your investment because your home will have appreciated in value and you won’t be faced with having to make expensive and major repairs. Buyers will appreciate the care you took to maintain the home, and you will be able to overcome buyer objections making it easier for you to sell your home quicker and help you receive top dollar for your home whether home prices are appreciating or falling.