The last several years have seen consistent economic growth in California, bringing in more jobs and people. This, in turn, has led to a property market boom. With the demand that continues to outpace supply, there is an excellent outlook for sellers in this market over the next few years, at least.
Along with the increasing prices, return on investment (ROI) will also scale for additions or renovations to your California home. This can be an excellent time to undertake some home improvements and raise the value of your property for sale in 2020 and beyond. Here are a few ideas:
When it comes to the valuation of property, many buyers find it hard to ignore what’s right under their feet. Floors are essential to a home’s aesthetic and function. Their condition is an excellent indicator of the overall maintenance (or lack thereof) in your home. Never allow the wood to rot and make sure to repair any damage. Refinishing and applying a protective coating every few years is an easy way to yield dividends.
Great flooring can last decades, and upgrading the quality adds to the long-term value of a home. This can be particularly important in the higher-priced markets such as Orange County. Remember, prospective buyers will also be looking at the property’s potential to appreciate over time so that they can turn a profit when their time comes.
First impressions matter, and what your buyers see before stepping inside carries a strong influence. Simple care of your lawn can net returns of about three times the costs in fertilizer and pesticide. That’s a lot of immediate impact for a small effort.
However, you can expect to see diminishing returns for more excellent landscaping work. Everybody tends to have different personal tastes, so it’s better to leave the yard well-kept and ready for the buyer’s customization. You’ll get significantly better returns on functional outdoor improvements, such as a deck, which can serve multiple purposes.
Kitchen and bath
The kitchen and bathroom are considered the two most important rooms in the house for valuation purposes. It can be tempting to lavish upgrades on these rooms, but the smart choice is to be selective and focus on function. For instance, expanding kitchen cabinetry improves the storage capacity and will bring in more ROI than installing designer fixtures. Similarly, instead of a luxury bathtub, consider adding a bathroom out of the existing space.
People will be looking at the kitchen as a functional area to prepare and cook food, while the bathroom is essential for hygiene. Bear that in mind and make upgrades that prioritize function over form.
Like floors, windows play a crucial role in appearance and function. As the main entry point of light into the home, windows inevitably draw attention and exert an influence over the indoor environment. Furthermore, new energy-efficient windows help to regulate temperature and lower your energy costs passively. This can be an underrated selling point in today’s market. The millennial demographic is looking to settle down and purchase property, and this is a generation that values sustainability and lowering one’s carbon footprint in every way possible.
It’s a seller’s market now in California real estate, and with these trends projected to continue, you get to dictate the prices. Selective home improvements will let you enjoy a better place to stay, with an eye toward optimal ROI in the future.