Why Spending Money will Raise the Price of Your Home

September 26, 2014 by  
Filed under Finance & Loans

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Written by: Financial Haze

The old saying “spend money to make money” applies to real estate too. Any home owner will tell you that it’s a money pit, but the money you put into the home doesn’t just go into the ether. If you’re careful about how you spend, and what you do with your money, your investments into improving the home can have huge payouts later on.

Where You Spend Money Matters

You can’t avoid paying to repair water spots in a guest bedroom. Failure to do so could lead to mold and catastrophic problems with your respiratory system, but you can focus more money on rooms that do matter. Buyers tend to be wooed by kitchens, master bedrooms and bathrooms, so sellers would do well to focus improvements on these areas. What helps sell the look are new fixtures, reduced clutter, and an attractive space full of neutral colors. There are other improvements you can make specific to your property, but these are some general rules to keep in mind as you think about what to improve upon.

Set a Budget for Repairs

If you set an overall budget for your home, you’re likely to see a larger increase. There are two reasons this is likely to happen: you avoid over spending and you tend to make more intelligent purchases. If you have a ceiling of $15,000 to improve a property, you start isolating what you can do yourself and what requires a professional.

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Choosing to do some of this work yourself will save money, and allow you to tackle a greater range of improvements around the home.