How to Add Value to a Home Through Renovation

Adding Value By Renovating

• 1

  Make an appointment with the top selling real estate agent for the neighborhood where the home is located. When they arrive, take notes. Tell them you are planning to renovate your home and would value their insight into what to renovate and what limits and budget they feel is appropriate. Every neighborhood has characteristics, some are family oriented and expect three or more bedrooms, others are urban and may favor a media room. A good real estate agent for your specific neighborhood will know exactly what the market is and what they want.

• 2

  Show the agent the areas to be renovated and your clippings. Take notes about their opinion on the return for value on each item, what they say to include and what they say to avoid. Most can quote approximate value numbers.

• 3

  Create a survey with questions about the home such as what people like, things they aren't so thrilled with, things they might fix, why they would or would not buy the home. Make 50 copies.

• 4

  Invite friends over for a renovation party. Provide good food and drinks and a survey and pencil. Ask each of them to fill out the survey while wandering about the home from room to room. This will give you insight into how others see the home and its issues or positives. They should not put their name on the surveys. Provide a box near the door where they can place them before they leave. It is important for them to be candid and not be worried about your friendship.

• 5

  Revise the renovation plans to include the agent's feedback and the opinions of your friends. Some renovations like repainting rooms in neutral colors will always add value. Updating kitchens and baths will often add value if the renovations are kept to the features that are most desirable in your area and neighborhood. Reconsider renovations that may reduce the value of the home based on your expanded knowledge. Removing a bedroom in a family-oriented neighborhood can reduce the home's value. Adding pools outside can reduce the home's value because many people don't want a pool in their yard. By learning what the neighborhood's market is you can make more informed choices and you can limit expenditures on features that won't improve the value of your home.