Maximize Home Value: How Smart Renovations Transformed a $2 Million Listing
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by Unboxify,
4 min reading time
Unveiling the $2 Million Listing: How Smart Renovations Boost Home Value 🏡
When it comes to maximizing the value of a home, strategic renovations play a crucial role. Today, let's explore a fascinating case study from Coeur d'Alene, Idaho, where a home jumped to nearly a $2 million price tag thanks to some savvy upgrades.
Changing the Address: The Power of Location 📍
This home's journey to a higher listing price began with an unusual step—changing its address.
The front door was moved from 8th Street to Wallace Avenue.
Why? Some buyers avoid thoroughfare streets, preferring quieter, residential avenues.
Data from homes sold on both streets proved this change justified the higher asking price.
Interior Transformation: Open Floor Plan and Beyond 🛋️
Inside, the renovators knocked down walls to create a desirable open floor plan. Here's how that played out:
Combining the living room, dining room, and kitchen into one open space.
71% of consumers say they would pay a premium for kitchen upgrades above any other room.
Modern brands of appliances and soft-closed cabinets are not just features—they're expectations in today's market.
Is the Cost Worth It?
Consider this: Two identical homes side-by-side, one with a renovated kitchen and one without, sold for a $75,000 difference.
Even if the kitchen renovation cost $50,000 to $100,000, it justified its value by adding $75,000 to the home's selling price.
Bedrooms: Focus on Space and Storage 🛏️
For bedrooms, buyers prioritize windows and closet space.
The primary bedroom in this property accommodates a king bed and two nightstands.
However, its two closets are not as spacious, leading to mixed feelings from potential buyers.
Closet Expansion: A Worthy Investment?
The sellers opted not to expand the closets but provided visual renderings for potential renovations.
This helps buyers see the possibilities without overestimating costs in their minds.
Bathroom Overhaul: Things You Can't Ignore 🚿
Bathrooms received full renovations with essential upgrades:
Marble shower, standalone tub, and the all-important double sink.
71% of buyers spending $500,000 or more expect a double vanity in the primary bath.
Bathtubs are generally necessary, especially in family-friendly neighborhoods.
Bathroom Layouts
This property features tubs in two of the three bathrooms, with just a shower in the basement.
The floor was lowered in the basement to create more headroom, turning it into functional living space.
An added egress window transformed a basement area into a legal fourth bedroom, significantly increasing the home's value.
The Importance of Utility Upgrades 🔧
Not all valuable renovations are about aesthetics. Essential systems within the home also play a vital role.
Installing a tankless water heater reduces long-term heating costs and adds significant value to the home.
However, not all technology upgrades carry the same weight. For example, smart home features like auto water sprinklers don't necessarily add dollars to the listing price.
Prioritize Based on Sale Timeline
Sellers need to consider how quickly they want to offload the property to determine which renovations make sense.
Aesthetic Neutrality: Appealing to More Buyers 🎨
The renovators chose neutral upgrades to appeal to a broader audience.
They avoided bold, unique design choices that might only cater to a niche market.
Neutral colors and styles help potential buyers envision themselves in the space.
Square Footage: How Bigger is Better 📏
Square footage significantly affects a home's value, but there's a catch:
Larger homes fetch higher prices, but the jump from 4,000 to 5,000 square feet is less impactful than going from 3,000 to 4,000 square feet.
Market Trends: Riding the Wave 📈
Market conditions can justify expenses as well.
The influx of buyers from urban areas, like California, led to higher demand and contributed to price increases in markets like Coeur d'Alene.
As of April 2024, home prices in Idaho were up over 15% from the previous year.
The Undeniable Value of Land 🌍
Ultimately, the land itself often holds more value than the structure sitting on it.
As house prices rise in a neighborhood, it's usually the land appreciating in value.
The structure and improvements, unless periodically upgraded, tend to depreciate over time.
By following these insights, homeowners can make strategic decisions that increase their homes' value and attract potential buyers. Want to see dramatic results like this home in Coeur d'Alene? Start planning those strategic renovations today!
