When getting ready to sell in Rumson, knowing how to increase the value of your home can help you attract better offers. From curb appeal to home staging, here are some tips for improving the perceived value of your home.
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Property owners may choose to sell their home for various personal and financial reasons. Whether you’re downsizing, trading up to a larger home, relocating for work, or leveraging higher home values for profit, getting your home ready to sell is the key to a quick and successful sale.
Why is it important to increase your Home Value in Rumson, NJ?
Finding ways to increase home value will help you maximize the amount of money you can get for your property. This can be done by renovating key areas, updating your decor, enhancing curb appeal, adding more square footage, and installing energy-efficient components. Making obvious repairs and well-thought-out improvements will help you attract more prospective buyers and possibly negotiate a higher sale price.
Making an effort to increase home value can also hasten the selling process. If your home is well-maintained and has modern features, prospective buyers are more likely to see its value and make a good offer.
UNDERSTANDING HOMES VALUES IN RUMSON, NJ
When deciding how to increase the value of your home, it’s important to differentiate between market value and perceived value. Fair market value (FMV) refers to the price that a property would fetch in a balanced and competitive market based on factors like location, size, overall property condition, and recent comparable sales in the area. In other words, FMV is the price that a buyer and seller can both agree on in a fair transaction. FMV can be determined by looking at relevant data and real estate trends that shape the local housing market.
Perceived value, on the other hand, is more subjective. It is the value that a prospective buyer assigns to a given property based on personal taste, needs, preferences, and emotional attachment to the home. This can be influenced by several factors, such as architectural style, design, layout, lighting, and amenities. It can also be influenced by intangible features, such as provenance, exclusivity, previous ownership, and significant events that have taken place in the home.
While market value is more objective and easier to measure and validate, perceived value can vary from one buyer to the next. However, perceived value can also have an impact on the sales price – a property that is perceived to be highly desirable among many prospective buyers has the potential to sell for a higher price.
Unlike market value, which is influenced by fixed (i.e., location) and external (i.e., market conditions) factors, the perceived value of your home is largely within your control. Learning how to increase the value of your home through cost-effective improvements will help you improve buyers’ perception of it.
Real estate market trends and demand
Rumson is an idyllic borough encompassing more than five square miles in Monmouth County. Middletown Township is located just north of the borough while Little Silver and Red Bank lie to the south. Known as one of the most affluent towns in New Jersey, it is home to a close-knit community of about 7,000.
The borough is highly coveted for its waterfront properties, historic homes, and reputable schools. PropertyShark ranked Rumson among the 10 most expensive zip codes in New Jersey for its home prices. In March 2023, the median listing price was $2.7 million, or $655 per square foot, with a sale-to-list price ratio of 100%.
Located in a peninsula on the northern portion of the Jersey Shore, Rumson lies roughly one mile from the Atlantic. The town is surrounded by the Navesink and Shrewsbury rivers. Aside from its picturesque waterfront setting, Rumson is populated by mature elms and maple trees that turn into colorful foliage in the autumn.
Its scenic waterfront is a popular spot for walking, running, and swimming as well as fishing, crabbing, clamming, and ice-boating in the winter. Residents have access to a municipal boat launch with parking. There are several businesses catering to residents on the waterfront, including the Rumson Country Club River House as well as several parks, marinas, and restaurants with stunning views of the water.
Aside from a few establishments, Rumson is primarily residential with a laid-back suburban atmosphere. Researchers estimate that about 90% of the waterfront is privately owned. A large number of waterfront homes in the borough have private boat launches and other amenities that contribute to a leisurely lifestyle.
The borough attracts affluent buyers from New York City and other urbanized areas in New Jersey due to its natural beauty and relaxed environment. Located about 28 miles south of NYC, Rumson is a popular getaway for Manhattanites. Established as a borough in 1907, Rumson is historically known for upscale properties and lavish estates that served as summer homes for the elite.
Buyers with children move to Rumson for its school system. Residents are served by the Rumson Borough School District. Schools in and around the borough include Ivy Hill Preschool, Deane-Porter Elementary, Forrestdale School, Rumson Elementary, Rumson Country Day School, Holy Cross Academy, and Rumson-Fair Haven Regional High School.
Students also have access to the Oceanic Free Library, which harbors a vast collection of over 14,000 books and other materials.
Another factor that makes Rumson desirable is accessibility. Major transportation routes include the Garden State Parkway and Routes 35 and 36. The borough lies roughly 25 miles from Newark Airport and residents have access to train service via NJ Transit’s North Jersey Coastline as well as ferry service at Highlands and Atlantic Highlands.
Factors that affect home value
When determining how to increase the value of your home, here several factors to keep in mind:
- Location – The old adage “location, location, location” still holds true for real estate. Homes in desirable areas with good schools, great amenities, and secure environments tend to command higher prices.
- Condition – Well-maintained properties with updated features and newer appliances tend to have higher values than homes in need of significant repairs and renovations.
- Size and layout – Homes with open floor plans, more living space, and more bedrooms and bathrooms often have higher values than smaller homes with cramped spaces.
- Age – In general, newer homes have higher values than older homes with the exception of historic or architecturally significant properties. Further, an older but well-maintained home can have more value than a newer home that is in poor condition.
- Upgrades and improvements – Installing energy-efficient appliances, smart home technology, and water conservation features as well as updating the kitchen and bathrooms can help increase the value of a home.
- Curb appeal – Homes with well-maintained exteriors and professional landscaping have better curb appeal and higher values than properties with neglected exteriors and overgrown lawns.
- Economy – Interest rates, job growth, and inflation can impact home values. In general, home values tend to increase when the economy is strong. Socio-economic issues, recessions, and disasters can negatively impact home values.
The importance of location in real estate
Location has a lot of bearing on home value for several reasons. It determines which public schools your children attend, which shops, restaurants, and hospitals you’ll have access to, and how long you’ll have to travel to and from work. Properties located in areas with good transportation and robust infrastructure tend to have higher values.
The quality and appearance of the neighborhood can also affect the desirability of a home. Safe, clean, and peaceful neighborhoods tend to be more attractive to prospective buyers and renters. Areas with friendly neighbors and strong community support can also give prospective buyers a sense of belonging.
Lastly, location can impact the potential for value appreciation over time. Homes in established areas with robust economies and strong job markets are more likely to appreciate, rather than depreciate, in value over time.
HOW TO INCREASE THE VALUE OF YOUR HOME
Decluttering
Decluttering can potentially improve a home’s perceived value. Removing unnecessary items and furniture can make your home feel larger, brighter, and more inviting, creating a positive impression on prospective buyers. Clutter can make a home feel smaller, darker, and potentially overwhelming, potentially making it less appealing than it really is.
Aside from opening up the space, decluttering can help highlight unique and desirable home features. With fewer visual distractions, buyers can focus on the bare bones of the home and its full potential as a living space. The absence of personal effects such as family photos and collectibles also neutralizes the space, making it easier for prospective buyers to envision themselves living in the home.
Exterior and interior repairs
Before putting your home on the market, it’s worth making basic repairs and upgrades to help increase its perceived value. Schedule repairs for leaking faucets, clogged drains, running toilets, and faulty light switches. Replace damaged wallpaper, tiles, window panes, and lighting and metal fixtures. Patch existing nail holes and make sure that all doors open and close properly.
When it comes to the home exterior, check the roof, siding, and viewing deck for obvious signs of damage. Repair cracked or loose stepping stones and stair treads, which pose a safety hazard for buyers visiting the home. Unclog downspout strainers and roof drains, if necessary.
Upgrading home interiors
Well-planned upgrades and improvements can help improve the value of your home. Before making any changes, it’s important to keep in mind that the return on investment (ROI) for home improvements can vary depending on several factors, including existing demand for specific upgrades, the cost of the improvements, and the craftsmanship and quality of the materials used.
Common examples of home improvements with potentially better ROI include:
- Kitchen renovations – Updating the kitchen can help increase the value of your home. Upgrading to newer and more energy-efficient appliances and installing modern countertops, cabinets, and fixtures can improve the aesthetic appeal and functionality of the space.
- Bathroom renovations – Updating lighting fixtures, flooring, taps, and faucets can give the bathroom a new look. You can also install a new bathtub or reglaze an existing one to improve its appearance.
- Outdoor improvements – Installing a deck, patio, or outdoor kitchen can help create more living space and make the home more appealing to buyers who want to be able to use outdoor areas.
- Energy-efficient upgrades – Adding smart technology or energy-efficient features that help improve insulation and indoor air quality can appeal to buyers as it spells comfort and convenience while reducing energy costs.
- Curb appeal – Getting professional landscaping, updating the front door, and giving the exterior walls a fresh coat of paint can make a good first impression on prospective buyers.
It’s also important to calculate the potential ROI in relation to the cost of home improvements. Some upgrades and renovations may not have a good ROI if they’re too expensive or time-consuming. Some examples of home improvements that may have a lower or less predictable ROI include:
- Swimming pools – While a swimming pool can be a desirable feature for some buyers, it may not provide a positive ROI in terms of the cost of installation and maintenance. Swimming pools can be expensive to install and maintain, and may not be appealing to all buyers, especially in areas with colder climates.
- Home additions – A well-designed and executed home addition that adds functional living space and blends in with the existing design of the home can potentially increase home value. However, a poorly done addition can negatively impact its value. It’s important to keep in mind that you may not recoup the total cost of the project in the sale price. You will also have to declare new additions to the local tax assessor as a significant increase in size can also raise your property taxes.
- Niche upgrades – Luxury buyers know how to appreciate hyper-specific kitchen appliances, rare materials, installation art, and custom finishes, but not all of them may be willing to pay a premium for these upgrades. Moreover, if you’re upgrading to luxury appliances, be prepared to answer any questions about warranties and home appliance insurance coverage.
- Overly personalized upgrades – Any upgrades that are too personalized to your tastes, such as unusual colors schemes, indoor murals, and accent pieces, may not appeal to most buyers. Most real estate experts recommend depersonalizing your home to appeal to the widest audience possible.
- Major renovations that require permits – Depending on local zoning laws and building codes, you may need to secure a permit before carrying out major renovation work. This is often the case for condominiums and waterfront properties. Without the proper permits, the renovation work may not be up to code and you may have trouble selling the home due to non-compliance.
Consult with an experienced real estate agent when making improvements to boost home value. They can offer advice on how to increase the value of your home while keeping it neutral and universally appealing.
Staging your home for sale
Home staging can have a positive impact on the perceived value of your home. Staging presents your home in the best possible light by emphasizing its most desirable features and showing prospective buyers how they might use the space. Effective home staging can also help buyers establish a strong emotional connection to the property. In addition, staging can give your home an elegant but lived-in feel, potentially increasing its perceived value.
Staging is the process of cleaning, decluttering, depersonalizing, and decorating a home to help showcase its full potential. A home staging expert will usually bring in some tasteful furniture, artworks, and decor to create the impression that the home is well-maintained and move-in ready. They may also light some candles and offer snacks and refreshments to help buyers enjoy their home viewing appointment.
Highlighting the key features of your home
When thinking of ways to increase the perceived value of your home, it helps to reassess the property and take note of any unique and desirable features that can be highlighted in the listing. For example, if you have a large stone fireplace or winding staircase in the living area, consider making it the focal point of your home staging efforts. Make sure that these details are included in the listing photos and description.
Getting a professional home inspection
You can get a seller’s home inspection done before listing your home. Some homeowners get their property inspected so that they can anticipate problems and fix any issues beforehand. This can help you decide what kind of repairs and improvements to make. If you haven’t kept up with property maintenance over the years, getting a seller’s home inspection will help you detect issues that have gone undetected.
SELL YOUR HOME IN RUMSON, NJ WITH MARIO VENANCIO
Find qualified buyers in Rumson and the surrounding areas when you work with a top agent. Mario Venancio has been serving clients in Monmouth County for over 30 years. Get in touch with him at 732.881.4306 or send an email to schedule a consultation.
As a local expert and skilled negotiator, Mario helps sellers make sound decisions in a dynamic and ever-changing market. He also provides access to a vast network of resources through Berkshire Hathaway HomeServices Fox & Roach to help make the selling process as smooth and stress-free as possible.