How Do Home Improvements Affect Resale Value?

Thinking of upgrading your flooring? Putting in a pool? Changing out old faucets and hardware for shiny new replacements? Upgrading and enhancing a home’s features, comfort and esthetics is something many people plan and save for to improve their surroundings. But it’s important to know whether such home improvements have an impact on the resale value of your home. Though you may have no current plans to sell, you never know when life may lead you in a different direction. Knowing what your home improvement investment is worth can help you make the best decisions for your needs now, and whether you can expect any return on these projects in the future sale of your home.

*image courtesy of pixabay
*image courtesy of pixabay

Know What Your Investment Is Worth

We’ve put together some of the most common home upgrade and improvement items, and insight as to how they may affect resale value. Keep in mind your location may have much to do with whether these upgrades add resale value or fall under the “overimprovement” category.

Flooring: The type of flooring and its resale value depends largely on where in the country you live. But in general, trading old, worn-out carpet and vinyl flooring for a hearty product like wood, tile or engineered hardwood has higher resale value. reports a relatively equal balance between initial cost and ROI for these products.

In-ground Pool: According to, the national average cost to install an in-ground pool is $44,873. This, of course, varies depending on your location, time of year you install, and the bells and whistles you choose for your backyard oasis. Unfortunately, many homeowners do not recoup their entire pool investment when it comes time to sell.

Kitchen: A kitchen remodel, or at the very least upgrading appliances and countertops, resonates well with buyers – especially with those in the market for the first time. Consumer Reports adds that upgrading your kitchen offers a potential increase of 3 to 7 percent in sale price.

Going Green: Eco-efficient solar energy is a hot topic in home designing, building and renovating these days – and for good reason. Upgrading to solar energy not only saves you money on utility bills and tax credits, it lets your recoup your investment. A recent study shows that home resale values increase by about $4 for every watt of solar energy installed.

Landscaping: Improving your home’s curb appeal has a positive impact on resale value, as reported by In fact, in the 2016 National Association of Realtors® Remodeling Impact Report, landscaping returned nearly a 100% on investment.

Many homeowners want their properties to be comfortable, and to enjoy their time while living in their homes. Your decision to upgrade may be based on any number of considerations. Knowing whether your projects add value to or over-improve your home is important as a homeowner, and could help you determine the right course of action for your humble abode.


What Are My Closing Costs When Selling a Home?

Our last post discussed closing cost breakdown on the buyer’s side of a real estate sale. But what closing costs can you expect when selling a home? The seller’s side of the Closing Disclosure form typically has fewer line items than that of the buyer, but the costs vary based on a number of factors.

Seller's Closing Costs

The two portions of seller’s closing cost having the most impact on the bottom line are the agent(s) sales commission and mortgage payoff balance. Though paid at closing out of the proceeds from selling your home, we’ll leave these aside when discussing fees associated with seller’s closing costs. Total seller’s closing costs typically average between six and 10 percent of the sale price, as reported by

Understanding Seller’s Closing Costs

Here’s a breakdown of typical closing costs incurred when selling a property:

  • Loan Payoff Fee: Covers the cost of forwarding the loan payoff to the lender.
  • Lien or Judgment Releases: Settles any liens or judgments against the home.
  • Termite Letter: Covers the cost of a termite inspection. A termite inspection and letter are generally conducted and submitted prior to closing.
  • Home Warranty: The purchase of a service plan that covers the cost of repairing or replacing major systems and appliances in the home you are selling in the event breakdowns, damage or loss occurs. (This coverage typically lasts for one year after closing.)
  • Home Repairs: Often appear in the form of a credit to the buyer to cover the cost of any necessary (pre-negotiated) home repairs.
  • Homeowner Association Fees – Prorated based on the amount owed at closing. (If paid in full or through a date beyond closing, these amounts are prorated back to the seller and paid by the buyer.)
  • Condo/Co-op Fees: Also prorated based on the amount owed at closing. Like HOA fees, any amounts paid for in advance for time beyond the closing date are prorated back to the seller and paid by the buyer.
  • Property Taxes: This amount is prorated based on the percentage of the year the seller owned the property.
  • Deed Preparation Fee: Applies to the document composed to transfer title on the property from the seller to the buyer.
  • Storm Water Fee: Varies per city, and is charged to cover the cost of treating, storing and managing storm water runoff within the community.
  • Grantor’s Tax: Transfer tax paid to the state, which covers the cost of conveying the property from the seller to the buyer.
  • Notary Fee: Fee charged to verify signatures on closing documents. This typically applies if the seller is not local to where the transaction occurs.
  • Settlement Fee: Paid to the company or attorney conducting the closing and covers the cost of preparing documents and executing the transaction.
  • Seller Concessions: Paid by the seller on behalf of the buyer to cover the cost of certain closing fees. These amounts or items are negotiated prior to closing.

*These fees may vary based on state, city and county, and per mortgage product. Some may not be applicable, depending on the circumstances surrounding your closing.

Learn more about closing costs and the settlement process by contacting our friendly, knowledgeable team today! Call Linear Title & Escrow at (757) 340-0340 for additional information.