As a real estate broker right here in New Orleans, I've seen a whole lot of homes and a whole lot of ways to live in them and enjoy them. And I've come to understand that there's no wrong answer when you own your home. That's the fun of it.
When you move into your first home, a quiet night will happen within the first two months where you look around and realize, wow, that chandelier is mine, that fireplace mantel, that antique door, that doorknob! And that's the best part. You own your nest and all the feathers and twigs that make it a nest. You can make it whatever you want. Knock down this. Color that. Raise this. Add that.
But some improvements add retail value to the home, and others don't. That's OK, both are important for different reasons. Remember, it's yours, and you're there to enjoy it. The trouble arises when homeowners don't know which is which.
So, what will add value to your listing price when you sell your home, and what will be just for you to love while you live there? We've created a video series for that.
Here are several fun ways to spend money you won't necessarily get back when you close that we see all the time. [And don't worry, we've put the short version in text for quicker reference].
Not living in your home long enough. Owning your home can be worthwhile, even for a short time. You're building your own equity instead of paying someone else's mortgage. However, if you don't stay long enough, you may not profit when you sell. If you've lived there for too brief of a period, you may even need to pay to close. Bringing money to the closing table on the seller's side happens all the time. So when do you stop bringing cash and start getting a fat check? The ideal duration depends on factors like location, neighborhood, style, condition, size of the home, and the current real estate market.
Overinvesting in your home. In certain markets, high-end finishes like Carrera marble can significantly boost your home's value. In others, they may be less valued. For example, finishes are critical in many of Manhattan's luxury buildings. However, you might only recoup some of your investment. In places like New Orleans, the impact could be even less. Design trends change approximately every 8 - 10 years. So, choose your upgrades wisely if you want to see a return on your investment. Ask us for guidance on what upgrades are currently in demand. Watch full video on finishes for more detailed info.
Removing walls unnecessarily. Transforming three bedrooms into a single large room might seem appealing, but bedrooms and bathrooms typically add value to a home. Before you start demolishing walls, consider how much you'll enjoy the new space versus the potential decrease in your home's value. Watch full video on what counts for more detailed info.
Adding square footage with limitations. In New Orleans, for example, square footage only adds to a home's sale value if the ceilings are seven feet tall or taller. Converting your attic into a living space is a great idea, but the areas with ceilings under seven feet won't count towards the official square footage (think eaves). Similarly, raised basement spaces can add value and even open up room for income generation, but those ceilings must be tall enough to qualify for your total living space. Enjoy these unique spaces, but be aware they might not contribute to a higher sale price. Watch full video on squarefootage that counts for more detailed info.
Excessive landscaping. Investing in curb appeal is a smart way to add perceived value to your home. However, not all landscaping investments will pay off at closing. While some improvements, like simple clean-up and mulch, can add to perceived value, others, such as a $100,000 pool, won't bring a dollar-for-dollar return. These additions are more for personal enjoyment than for increasing your home's resale value. Watch the full video on landscaping for more detailed info.
Installing advanced technology. We often get asked about the value of solar panels, Tesla chargers, home batteries, and advanced home automation systems. While these can enhance your quality of life and, in some cases, save money (like solar panels), they usually don't add much to your home's sale price. Remember, these systems evolve all the time. For example, all those USB-A plugs are already a tad dated now that USB-C is all the rage. Watch the full video on what to watch with tech for more detailed info.
Wrong pre-listing improvements. There are many ways to enjoy your home but not get your money back, and one of them is spending on the wrong projects before listing. Every neighborhood has its own style, attracting specific buyers. We've sold homes with unconventional dining room colors above the asking price because they matched the local vibe. But, in other places, neutrals win top dollar. Always consider the preferences of potential buyers in your neighborhood. Watch the full video to avoid spending money you don't need to before you list.
There are so many things that you can do to add value to your home, from necessary upgrades like a new roof or upgraded systems to more innovative additions and personal touches. But remember, some investments are more about enjoying your home than boosting its resale value. Looking to stay informed about your choices? We're here to answer your questions, and we've got good news. Today's design trends favor uniqueness and personalization, and in New Orleans, more people seek homes with character than not.
So go ahead, enjoy the heck out of your home. Feather that nest. And when you want to stay in the know of what's hot where and stay inspired, too? Join our Facebook group, Home in New Orleans. We're constantly sharing new trends and ideas for enjoying your home in this amazing and unique city. But when you're ready to sell, give us a call and do so early so you don't waste a cent you don't have to. We've got you covered.
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing real estate broker in New Orleans and the founder of Cool Murphy Real Estate.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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