Alabamans living in Pelham, Trussville, Leeds, or Bessemer may not think about the resell value of their home when they buy a house, but they should. Birmingham has plenty of houses on the market that may net homeowners a bigger return on their investment. Considered one of the hottest markets in late 2014, the housing market in Birmingham is expected to grow 7.8 percent this year. Housing prices have risen 6 percent and the average house costs $174,000 in this city. Revitalization is drawing homeowners into the area.
What will add value to your home? Many times, smart house improvements can add value to your home. If most homes in your neighborhood have two bathrooms, adding a second bathroom to a one-bathroom house can increase its value. The wrong decision can bring down your home’s value. Some homeowners do not think about a house’s resell value until after they buy; they should think about it before they buy the house.
It is true location is truly everything and a house that is in Birmingham’s charming Avondale Park, a historic district area, may sell better than one located on one of Birmingham’s busiest streets. Many families and couples want a house that is minutes from Birmingham’s downtown area, without having to hear the heavy traffic.
Avondale Park does happen to be popular and couples and families may have to search awhile to find a charming Tudor, Georgian, or Federal-style 1920s cottage in this area. There are many neighborhoods to choose. Make sure if you do add outside improvements, such as planting an orchard, they will add value to your home.
Modernize appliances, such as the dishwasher, sink, cooktop, wall oven, and built-in microwave can add value to a house. You should not stop there. Replace the flooring with hardwood and this change can increase the value of your home. It may also increase the value of your house to install new countertops, seating, and a prep space.
When you do remodel your kitchen, keep in mind the cost versus what you expect to get in return. You may need to spend more money than you expected to remodel. However, if done right, a great major kitchen remodel should net owners at least 68.9 percent back on their investment when they do resell their house, according to Remodeling Magazine.
Did you know first-time homeowners would usually opt for a two-bathroom house, if it costs less to get a one-bathroom house and install a second bathroom? How much will adding a bathroom add to the value of a Birmingham home? On average, Birmingham homeowners can expect to recoup 65.2 percent of the investment after a renovation.
What will really increase a bathroom’s resell value? If you replace fixtures, such as adding a tub with tile or a two-man shower, you will increase the value of a bathroom. If you are going to upgrade a bathroom, do not forget small touches. Install a new vanity, a contemporary mirror, and lighting fixtures. It may be good to splurge and buy tile for the floor or buy an energy efficient toilet. Keep in mind adding bathrooms, without purpose, may reduce your house’s value. It is not enough to have bathrooms without having one of those as a master bathroom.
Adding both storage space and a family room can be smart additions that increase a home’s value. Your house may not necessarily need a family room if there is enough space for all the family to gather comfortably. It may be more important to have space to store stuff. Walk-in closets are essentially for many homeowners and houses with smaller closets may not sell well.
It is best to think about what a buyer would want, before you buy a house. If you do this, you will know the resell value before you list your house. Do watch trends; what is popular today may not be popular tomorrow in the Birmingham neighborhood you have chosen.