How do home improvements affect your buying a metro Detroit home

Are you thinking of buying a Metro Detroit home and putting in a house offer but there are home improvements?

Even when comparing exact model matches within a subdivision of homes, you should note whether the previous owners have made any substantial improvements. Cosmetic changes should be largely ignored, but major improvements should be taken into account. Just because it is painted or landscaped nice doesn't add huge value.

New windows, new roof, new furnace are a little plus but doesn't add huge value. We expect all homes to be in "working condition" or "fair condition". Most important would be room additions, especially bedrooms and bathrooms. If you get a new roof, new furnace it is a plus but not a value unless the other house you are looking at is going to need a new roof, or new furnace within 2 - 5 years. If you are getting more square footage, more bedrooms, or more bathrooms for the same price then that is a better deal.

Major upgrades, such as a complete kitchen remodel, can be considered also. If all the homes you have been looking at need new kitchens, but one has a new kitchen. And that home is asking $10,000 more! The question is how much would it cost to bring the others up to the same standard. Of course then you could do it the way you want. But if it cost at least $20,000 to do a kitchen and the other homes are very similar. Then the one that costs only $10,000 more is a better deal.

Over the top improvements should be discounted. Sure a spa, granite counter tops are great but they don't add huge value. If granite counter tops cost $5,000 it doesn't add $5,000 in value. Other items, such as expensive floor coverings or swimming pools can be taken into account also, but should be discounted. A pool that costs $20,000 to install does not normally add $20,000 in value to the home. A pool may not add value at all. Many people don't like pools at all. Some people won't even look at a Metro Detroit home with a pool.

If you are buying a metro Detroit home then consider the home improvements that affect the value of the home. The bottom line is that additions, square footage, extra space, extra bedrooms, extra bathrooms, more usable space, larger garage give more value. Remember when looking at Michigan houses for sale to compare apples to apples as much as possible. Westland and Livonia real estate may be less expensive than Northville or Novi real estate even for the same square footage.

Russ Ravary your Metro Detroit realtor

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