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Archives for October 2019

How Do Improvements Raise the Value of Your Home?

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kitchen remodelAs a homeowner, you’re probably familiar with the term “improvement.” But what exactly is a home improvement? Is it just any enhancement to your home? What increase in home value can it bring? Let’s find out.

By definition, a real estate improvement contributes towards improving a home’s performance and/or increasing its value. Improvements do not include general maintenance-related actions that seek to sustain an asset’s current value.

Painting your home isn’t an improvement because it sustains your home’s value but doesn’t increase it. But a new addition to your home does increase its value, which makes it an improvement.

Some capital improvements raise the value of your home and some don’t – and still others minimally do.

Minimum-Impact Improvements

Consider replacing your roof. This increases the marketability of your home, but if you’re replacing it with similar materials, the increase in value is minimal. Why? Because all houses are expected to have a roof.

Swimming pools do not add much value because they are considered a high-maintenance item that many prospective homebuyers don’t necessarily want.

Once again, painting is another low-impact improvement. It may help your marketability when you’re selling, but even if you’re adding custom murals, the financial improvement is low.

Moderate-Impact Improvements

Some examples include:

  • Installing new flooring, such as tile and hardwoods (but not carpet)
  • Installing new patios and decking in outdoor spaces
  • Finishing a basement

High-Impact Improvements

Here are two examples that typically have a sizable impact on increasing your property value:

  • Remodeling your kitchen
  • Remodeling your bathroom

Obviously, updated kitchens and bathrooms can really increase the desirability of a home since they usually involve high-cost materials.

Keep in mind that the location of your home and regional architectural elements play a key role in valuation, too. For example, if you custom build a home in the Northeast using Southwest styling, such as vigas and kiva fireplaces (which are not the norm for the region), don’t expect to get a good return on your investment. Remember, there is such a thing as over-improving your home for the area it’s in.

Do you have any home improvements that raised your home’s value or taxes? Please leave them in the comments below!

And if you have any questions about home design or about selling or buying a home in metro Albuquerque, be sure to contact me today!

4 Things to Consider When Hiring a Custom Home Builder

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Building a custom home? Customizing the layout and build of a home, although daunting, can be a very rewarding undertaking. This is because every single aspect of the house is built to the specifications of what the homeowner wants.

Custom homes are the ultimate dream home, so choosing the right builder who can help bring it to life is crucial. Consider these four factors when deciding which builder to hire for your custom home.

1. The builder’s body of work

Because building a custom home is not the same as building using a cookie cutter, run-of-the-mill floor plan, it’s important to look for quality in all aspects. When selecting a builder, take into consideration their past projects. Perhaps ask for a portfolio, or request to tour some of the previous homes they’ve built to check how polished their handiwork is. Interview past clients if possible, and ask them about their experience with the builder. If the builder is good, it will show in their body of work, and former clients will have little to no issues with them.

2. The builder’s choice of materials

When building a custom home, what matters most is the structure, and it’s usually the foundation and the framing of a house that get looked over in the frenzy of deciding what paint color to buy and what roofing to use. Talk to the builder about the quality of the materials they use, from the largest sheet of plywood down to the smallest screw. Knowledgeable builders shouldn’t balk at the request and will be happy to share these details; be wary about those that skirt around the details.

3. The builder’s credentials

Custom homes can be very diverse; some homeowners may wish to have indoor pools while some may opt to have heated flooring. Licenses and certifications are one way to ensure that the builder has the experience and accreditation to undertake the specific needs common in custom home builds. Check with industry associations such as the National Association of Home Builders and other similar bodies to check if the builder can take on a particular request for a custom home build.

4. The builder’s communication style

Creating a custom home can be a very stressful experience, and this can be exacerbated if a home builder is unable to communicate well with a client. A good custom home builder is able to communicate to a client what can and can’t be done with the budget and resources without compromising the client’s vision. Communication doesn’t just end with the initial discussion of how the home will be built–a good custom home builder should also be able to keep clients updated of the status of the project, and likewise should be able to arrange things with suppliers and even with the client in a smooth manner.

There’s no shortcut to creating a custom home, and there’s certainly no shortcut to hiring a custom home builder either. But keeping these four factors in mind should point you in the right direction, and help turn your dream home into a reality.

And should you have any questions about selling or buying a home in metro Albuquerque, be sure to contact me today!

Anita Mora, Associate Broker
Coldwell Banker Legacy
8200 Carmel NE
Albuquerque, NM 87122
Cell: 505-400-8105
Direct: 505-292-8900
Office: 505-292-8900