Knowing the difference between maintenance and improvement items in real estate can probably eliminate some frustration for a seller.

 Maintenance items are things you do to maintain the value of your property.  Maintenance can be as different as routinely servicing the heat pump – or – replacing a heat pump that needs to be replaced.  There is an obvious difference in the cost associated with these two items; however, there is not much, if any, added value to the property.  Most buyers will expect an operating heat pump – or will substantially discount the price if they will need to replace it.

 Improvements, on the other hand, are things done to improve the value of a property.  Adding square footage or adding a bath are things that would be considered improvements. A caution should be noted, however.  Not all improvements will improve the value of the property at the same rate – and sometimes not at all.  Dollar for dollar, adding a bathroom will usually improve the value more than adding, say, a fireplace – or completely remodeling a kitchen as compared to replacing vinyl with marble.  An addition that makes yours the biggest house on the street might price you out of the neighborhood discussed above; this would minimize the return you might be able to expect on the money you spend.

 There are three times when you need the advice of a real estate professional – when you want to buy, when you want to sell, and when you want to remodel.  Before you spend $1 improving your house – or even getting it ready to sell, for that matter - find out if it will be a beneficial expenditure.

 For advice on maintenance or improvement expenditures, click here.

•  A final consideration needs to be current market conditions.  We’ve seen so many fluctuations in the real estate market here; it can be difficult to keep up.  What is happening “now” is important, and maybe even critical, in your pricing decision.

 Click here if you want additional, no-obligation information about market conditions or the value of your house.