In my previous post I discussed three common mistakes people make when attempting to increase the value and appeal of their homes via increasing the GLA: 1.)Poor quality of workmanship 2.) Functionality(How will you use the added space?) 3.) Does it conform to other houses in the subdivision or area? (i.e. enclosing a garage increases the living area but you lose car storage.)
The main question you want to ask yourself is how you can get the best return on every dollar you invest in your home. One of the most effective ways to get a return on your investment is the popular kitchen remodel/update. The degree of updating varies but a typical kitchen update includes new appliances, counter-tops, painted or re-finished cabinets, new flooring and possibly new light fixtures. Keep in mind that you don't always have to use granite counters and tile flooring to get the best bang for your buck. If you are in a neighborhood with moderately priced homes you can save money by putting in a good quality vinyl and formica. They look good and the essential effect you get is the same; you have a newly remodeled kitchen which increases both the appraised value and the market appeal if you are trying to sell. I see a lot of people over-spend when it really is not necessary. It all depends on the price range of the homes in your particular area. If you live in an area where the market definitely shows a preference for granite and tile, then you will get the best return on your money by using granite and tile. It pays off to do a little research on the front end to get the maximum return on the back end. Check back soon for part III on "Increasing Your Home's Value".