I‘ve recently had questions from Bay Oaks neighbors about the resale value of some home improvements, primarily replacement windows and generators. No doubt these are high ticket and heavily advertised upgrades.
With the help of an appraiser contact I’ve compiled a reference list that I hope will be informative and a useful guide.
Several factors impact the value of a home, including the presence of new windows, a generator, etc… Here’s how these features could influence home value:
1. New Windows:
- Energy Efficiency: New windows often provide better insulation, reducing energy costs for heating and cooling. This can be a significant selling point for buyers.
- Aesthetic Appeal: Modern windows can enhance the overall appearance of the home, contributing to curb appeal and potentially attracting higher offers.
- Maintenance and Longevity: New windows suggest that the home is well-maintained and reduces the immediate need for replacements, which can be appealing to buyers.
2. Generator:
- Reliability and Safety: A generator ensures that the home remains powered during outages, which can be particularly valuable in areas prone severe weather or frequent power interruptions.
- Added Convenience: It provides peace of mind to homeowners, knowing that essential systems like heating, cooling, and refrigeration will continue to function during a power outage.
- Market Appeal: Homes with generators may appeal to buyers who prioritize emergency preparedness and continuous power supply.
I think it is important to distinguish between buyer preference items and upgrades.
Buyer Preference Items are features or characteristics of a home that appeal to individual tastes and preferences. These items may not necessarily add significant value to the home but can make it more attractive to certain buyers. Some examples are below:
- Decorative Choices: Paint colors, wallpaper, and specific styles of lighting fixtures.
- Landscaping Choices: Specific types of plants, garden designs, or water features.
- Interior Design: Custom built-ins, unique shelving, or specific furniture arrangements.
- Smart Home Features: Preferences for certain smart home systems or devices, like a particular brand of thermostat or security system.
Upgrades are improvements that enhance the home’s functionality, efficiency, structural integrity and/or improved aesthetic appeal. These potentially add tangible value to the property and can increase its market price. Some examples are listed below:
- Structural Improvements: New roof or added square footage.
- Major Systems: Updated plumbing, electrical systems, and HVAC units.
- Kitchen and Bathroom Remodels: Modernized kitchens and bathrooms with high-quality materials and finishes.
- Durable Materials: Hardwood floors, new carpeting, or upgraded tile work.
- Functional Additions: Adding a generator
Key Differences:
1. Value Addition:
- Upgrades: Could add measurable value to the home some of which could be recouped in the sale price.
- Buyer Preferences: May not add measurable value to the property but
can make it more appealing to specific buyers.
2. Marketability:
- Upgrades: Could increase the overall marketability and desirability of the home across a broad range of potential buyers.
- Buyer Preferences: Could enhance the appeal to buyers with similar tastes but might not be universally appreciated.
3. Longevity and Maintenance:
- Upgrades: Might involve improvements that have long-term benefits and reduce future maintenance costs.
- Buyer Preferences: Usually related to personal tastes that might change over time or with different ownership.
4. Cost vs. Return:
- Upgrades: might involve significant investment but could offer a higher return on investment (ROI) in terms of home value.
- Buyer Preferences: Might not translate to a higher sale price.
In summary, while buyer preference items personalize a home and make it more attractive to specific buyers, upgrades improve the home’s fundamental qualities, potentially adding real value and enhancing its appeal to a broader market.
