Everyone who owns a Columbia SC home must face routine maintenance, such as replacing worn-out plumbing components or staining a deck, but some choose to make improvements with the intention of increasing the home's value.
Certain projects, such as adding a well thought-out family room – or other functional space – can be a wise investment, as they do add to the value of your Columbia SC home. Other projects, however, allow little if any opportunity to recover the costs when it's time to sell.
Things You Think Add Value To Your Columbia SC Home, But Really Don't
Swimming Pool
A swimming pool is one of those things that may be nice to enjoy at your friend's or neighbor's house, but can be a hassle to have at your own Columbia SC home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain and a lawsuit waiting to happen. Families with young children in particular may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). In fact, a would-be buyer's offer may be contingent on the home seller dismantling an above ground pool or filling in an in-ground pool.
An in-ground pool costs anywhere from $10,000 to more than $100,000, and additional yearly maintenance expenses need to be considered. That's a significant amount of money that might never be recouped if and when the house is sold.
High-End Upgrades
Installing stainless steel appliances in your kitchen or imported tiles in your entryway may do little to increase the value of your Columbia SC home if the bathrooms are still vinyl-flooring and the shag carpeting in the master bedroom is leftover from the '60s. Upgrades should be consistent to maintain a similar style and quality throughout the home. A remodel might not fetch as high a return if the rest of the home is not brought up to the same level. High-quality upgrades generally increase the value of high-end homes, but not necessarily mid-range houses where the upgrade may be inconsistent with the rest of the house.
Wall-to-Wall Carpet
Potential homebuyers today often cringe at the idea of having wall-to-wall carpeting. Carpeting is expensive to purchase and install. In addition, there is growing concern over the healthfulness of carpeting due to the amount of chemicals used in its processing and the potential for allergens (a serious concern for families with children). Add to that the probability that the carpet style and color you thought was absolutely perfect might not be what someone else had in mind.
Overbuilding for the Neighborhood
Homeowners often make improvements to their property that unintentionally makes the home fall outside of the norm for the neighborhood. While a large, expensive remodel, such as adding a second story with two bedrooms and a full bath, might make your Columbia SC home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes.
Homebuyers don't want to pay $450,000 for a house in a neighborhood with an average sales price of $250,000; the house will seem overpriced even if it is more desirable than the surrounding homes. The buyers will instead look to spend the $450,000 in a $450,000 neighborhood. Your house with all its improvements might be beautiful, but any money spent on overbuilding might be difficult to recover unless the other homes in the neighborhood are pretty much the same.
Extensive Landscaping
Columbia SC home buyers may appreciate well-maintained or mature landscaping, but don't expect the home's value to increase because of it. A beautiful yard may encourage potential buyers to take a closer look at the property, but will probably not add to the selling price. If a buyer is unable or unwilling to put in the effort to maintain a garden, it will quickly become an eyesore, or the new homeowner might need to pay a qualified gardener to take charge. Either way, many buyers view elaborate landscaping as a burden (even though it might be attractive) and, as a result, are not likely to consider it when placing value on the home.
The Bottom Line
It's hard to imagine spending thousands of dollars on a home-improvement project that will not be reflected in the home's value when it comes time to sell. There is no simple equation for figuring out which projects will bring the highest return, or the most bang for your buck. Some of this depends on the local market and even the age and style of the house.
Homeowners frequently must choose between an improvement they would really love to have (the in-ground swimming pool) and one that would prove to be a better investment. A bit of research, or the advice of a qualified real estate appraiser, can help homeowners avoid costly projects that don't really add value to your Columbia SC home.
With both Columbia SC home prices still at attractive levels and interest rates at all-time lows, now may be the time to buy your dream home. The question renters are always asking is, "is it cheaper to own or to buy a Columbia SC home?" Stacy Johnson looks at owning versus renting in this short video…
In some markets, the break even point is 4 to 5 years, but in other areas, buying a home wins out in less than 2 years. There are wild markets where residents must wait up to 14 years for buying to make more sense than renting.
There are a host of factors potential buyers should think about when considering the leap, including the down payment, mortgage and rental payments, buying and selling costs, property taxes, utilities, maintenance costs and tax deductions. The analysis adjusts for inflation and forecasts home value and rental price appreciation.make more sense than renting.
For more tips on buying a Columbia SC home, check out our Columbia SC Home Buying Tips under the Columbia SC Real Estate Categories in the column to the right.
If a Meteorite were to hit your Columbia SC home, does your insurance cover that?
It’s been an odd time lately for Earth and celestial objects. A 10-ton meteorite crashed into the earth and exploded near the Russian city of Chelyabinsk, injuring hundreds and causing widespread panic. Meanwhile, a 143,000-ton asteroid passed just 17,000 miles away from Earth on February 15th, a little too close for comfort.
NASA scientist Don Yeomans recently noted that a basketball size object hits the earth’s atmosphere every day. This may have you wondering how a meteor shower or asteroid collision could theoretically affect your family or your Columbia SC home.
If a meteorite crashes through your roof, the damage to your Columbia SC home and belongings would generally be covered by your standard homeowner’s insurance policy, according to the Insurance Information Institute, a consumer education organization funded by the insurance industry.
Meteorites are classified as a falling object, one of the many “named perils” for which insurance companies cover personal property damage. Other odd perils include a volcanic eruption, a riot, and a falling airplane. In fact, you’re covered if your Columbia SC home is hit by “blue ice”, which is the frozen discharge that comes from airplane lavatories. (This might be a fate worse than a meteor crash).
While you’re most likely covered if a space rock hits your Columbia SC home directly, things would be more complicated (in a lot of ways, obviously) if an Armageddon-sized asteroid like the one cruising near Earth on February 15th entered your neighborhood. Standard insurance policies only cover personal property damage in your Columbia SC home if the falling object blasts directly through your roof or your walls. If an asteroid slams into the Earth a mile away from your Columbia SC home and your prized art deco sculptures tumble to the ground and shatter, insurance isn’t likely going to cover it. It has to be a direct hit.
The rules for meteors are actually no different than for a much more common falling object: trees. Your car would also be insured in this instance of cosmically bad luck, assuming you have comprehensive auto insurance.
For more timely insurance articles and information, check out our Columbia SC Insurance section under the Columbia SC Real Estate Categories to your right.
Trying to determine what the average cost of Columbia SC homeowner insurance might be can be tricky, and is also determined by a whole list of factors and circumstances. Learn about some of those factors that make up your insurance rates by watching this short video…
Before you can make sure your Columbia SC homeowner insurance policy is actually serving your needs, you need to take the time to educate yourself about the specifics of the policy. Learn more about your insurance needs with help from an experienced insurance agent, and also check out our other insurance tips by visiting our Columbia SC Insurance section under the Columbia SC Real Estate Articles to your right.
Downsizing to a smaller Columbia SC home is not always simple, painless, or smart. Financially, it may not be all that beneficial either.
Selling a Columbia SC Home in a Fragile Market
Millions of Americans age 50 and older are looking around their spacious homes and are deciding they don’t need all that room anymore. The kids are gone, and they could really use the money from a sale to bulk up their retirement funds. But with the real-estate market still fragile, many baby boomers are getting a lot less than they expected for the larger home.
But even when the housing market was robust, many downsizers had little left over after paying off the mortgage and covering moving costs.
Consider a study from Boston College’s Center for Retirement Research that looked at older adults who moved in the 1990s and early 2000s due to a change in circumstances, such as a job loss or divorce. The report found that while these movers generally chose to downsize, they didn’t get much in the way of a financial windfall. In fact, on average, they plowed almost all of their home equity into their new homes, freeing up an average of just $26,000.
Putting a large Columbia SC home on the market and clearing out decades worth of possessions, can be dramatic. But for most, it is just plain overwhelming. For others, emotional attachments get in the way.
The potential problems don’t end once downsizers move into their snug new homes. With fewer square feet to heat, mow and pay property taxes on, many downsizers assume they’ll slash their monthly expenses. But unless you’re willing to move to an area with a lower cost of living, the savings may prove modest, at best.
One of the biggest problems people encounter after downsizing is also one of the most obvious: It can be crowded. You’re used to all that space, and suddenly, it feels like you’re living in a milk carton because you kept too much stuff.
If you’re downsizing to a smaller Columbia SC home, sort your belongings a little at a time so you don’t get overwhelmed; don’t make judgments about what your spouse should or should not keep; and take only what fits your current lifestyle.