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Homeowners Do Not Over-Improve

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Homeowners and house flippers alike know that home improvements can make a huge difference in a home’s value. They also know that unexpected costs can quickly shrink the list of improvements the allocated budget can cover. Careful planning is the key to making the most of your home improvement. Seasoned professionals and savvy homeowners know that prioritizing improvements and keeping an eye on the bottom line are the best way to come out ahead on a home improvement project.
Do Not Over-Improve
No improvement, however lavish, will raise the value of a home much more than the average sale price for the neighborhood. It is important to make a home stand out in its neighborhood, but it is a waste of money to make luxury improvements in a modest …show more content…

Whether this involves gutting and replacing the entire kitchen or just applying a fresh coat of paint and some new cabinet hardware will depend on the neighborhood and the improvement budget. Although a major kitchen update is generally considered a cost-effective home improvement, even it cannot increase a home’s value much above the neighborhood average. A future buyer may negotiate a small reduction in price because of a pleasant but outdated kitchen, but it will not usually prevent a home from selling at all.

Cosmetics
Just as makeup can greatly enhance an attractive woman’s beauty, cosmetic improvements can make a home much more attractive and comfortable. Make sure to reserve some funds for purely cosmetic improvements. Even if the budget does not allow for expensive cosmetic work, things like paint, caulk, wallpaper, functional flooring and countertops, and attractive new hardware can make a home shine like a newly minted penny.

Few activities are as rewarding as improving a home, and fewer still have as much potential to increase the owner’s bank balance. To maximize this effect, choose improvements carefully and direct funds to areas where they can do the most

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