If you’ve been reading our blog, then you know a few things: (1) mortgage rates are at historic lows, which give buyers greater purchasing power; (2) housing inventory is at a record low, making it a true “seller’s market”; and (3) because people have more purchase power and inventory is low, housing prices are soaring. While that’s great news for sellers, it shouldn’t be the final stop in an enterprising seller’s thought process. Given that conditions are primed for a huge return-on-investment when it comes to selling your home, a wise seller should be considering how to set their home apart from the limited supply available. Now, more than ever, investing in your home is likely to pay for itself at the highest rate-of-return in a very long time. This article will briefly discuss home improvements that are in high demand with the COVID-era buyer, which will ultimately increase the value of your house vis-à-vis increased demand.
(1) Nobody Wants to Be Trapped Inside, so an Appealing Backyard Adds Serious Value
Let’s face it, we can’t really go anywhere. With fires raging, and everything shut down, we’re confined to our own property the vast majority of the time. Buyers are aware of this and will place a premium on a home that has an appealing backyard. While pools have always been a big-ticket item, they are now a bigger ticket item. As a seller, you should go out of your way to highlight your pool; landscaping to highlight the centerpiece of your backyard will pay for itself very quickly. Depending on what your financial situation looks like, it may also be prudent to add an outdoor kitchen and dining area as well; people will see this and immediately picture what life could be like if they lived in your home.
(2) Like it or Not, Remote Learning/Work Will be Around for Awhile
We all want to believe that this virus will go away in the next few months, but the vast majority of scientists believe we are looking at Q3 of 2021 for any return to normalcy. However, many institutions will have seen the light by then; remote work will be seen as a cost-saving option for businesses who want to maximize their profits, as businesses will be able to cut down on a lot of overhead cost if they reduce office size and work remotely.
Given the probable future, buyers will be quite pleased to see a home with a functional home office. Invest in your home office, invest in making it aesthetically pleasing, and add value to your office; it will pay for itself.
(3) Regardless of Whether People Will Use it, The Idea of a Home Gym is Very Appealing Right Now
It is an interesting aspect of human nature, but all of us tend to want something just a little more when we can’t have it. Right now, getting to a gym is a bit like the lottery (ok, it’s not that bad – but making an appointment to run on a treadmill for 30 minutes? Come on!); a prospective buyer’s imagination will run wild when they see a room dedicated to fitness. “I can get into shape from the comfort of my own home and have a beach body ready for summer 2021? Sign me up!” they will say. While exercise equipment can be pricey, and maybe you don’t personally want it, nobody said you can’t resell that exercise equipment to the prospective buyer to recoup the actual cost, and benefit from the increased value of your home. Even things like some free weights and yoga mats go a long way to communicating the space's potential.
Given the environment, investing in your home will pay serious dividends, so any enterprising seller should consider making that investment prior to selling. At the Chernov Team we understand that knowledge is power, and knowledge of what adds value to an already hot commodity is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table the most prepared leaves with the most, and the Chernov Team always leaves the table with the most.