Here at Palm State Mortgage we know that owning your dream home can be like claiming your personal Pot O’ Gold. With tomorrow being St. Patrick’s Day, we could not resist the reference!

We support this blog to help you with some basic mortgage information to help you secure the home of  your dreams with the perfect mortgage situation. Over the years, we have published articles on budgeting for your first home, the types of loans available, documentation for lenders and many other topics still available in our archives.

The “gold” at the end of our “rainbow” is reliable information about the mortgage process, finance news, and home investment.

Palm State Mortgage Company realizes that many people need to sell the home they own before they can move to a new home.  The new home might allow them to expand their family, move closer to work or move into to a good school district.

Perhaps you just want to take the next step in claiming your dream home or area. At any rate, whatever the reason for making the move, you quickly discover that your budget dictates you should plan the sale of the current home before the purchase of your new dream home.

This might lead you to upgrade your current home, but beware! When we look at the fiscal life of some loan applicants, we often see where the upgrading concept has led them–and their–budget astray. Upgrading the home in order to sell it has led some homeowners into financial trouble without really increasing their profit on the sale of the home.

Experts at Trulia state, “If you’re hoping to increase your home’s value (above and beyond the cost of an upgrade itself), you should know that the upgrades you value might not be valuable to potential buyers.”

The truth is there are certain upgrades that the industry knows will help sell a home, and certain upgrades that simply do not help. Check out the Red Flags below:

Red Flag Number One:  Increasing Square Footage

Big gains of living space like finishing out a basement room might help to sell your home.  Small, cute upgrades in your square footage do not really help.  So, think twice about adding that little glass garden room.

Square footage that does not blend into the home’s floor plan is also unwise.  For example, that cute powder room under the stairs by the dining room might actually turn off potential buyers. (Think about it–by the dining room, really?) Likewise buyers might not like a den upgrade so well if they  have to cut right through the master bedroom suite in order to get to it.

Upgrade Red Flag Number Two:  Posh Pads

You are sure your home will sell at a higher price because you have made it the most elegant one on the block.  You built  a second master suite add-on, lush landscaping, a circle drive, a marble fountain and fancy gates.

You now outshine all your neighbors. Think about it.  You just ruined the uniformity of the neighborhood. Now, buyers suspect they can’t afford the house or they don’t want it in that neighborhood.

Remember, your home improvements must help preserve the integrity of your neighborhood. So, about that imported marble fountain…(well, you know.)

Upgrade Red Flag Number Three:  Respect the Bedroom

Prospective buyers look for certain standard as they house-hunt.  Usually they expect two or three bedrooms, two bathrooms, and a garage. An “extra” bedroom is a real estate prize. Keep it adaptable to appeal to buyers who might want an extra bedroom for extended family.

Resist the urge to tear down walls and getting your home demoted from 3 bedroom to 2 bedroom. Likewise, turning your garage into a family room might discourage potential buyers who would never dream of leaving their cars unprotected in a driveway or a carport.

Upgrade Red Flag Number Four:  Caution, Mermaids!

Orlando, Florida is probably one of the few areas in the US where adding a pool might contribute eventually to a home’s salability.  More often, in regard to pools, “the return when you sell the house is not really big enough to pay for the investment.”

Upgrade Red Flag Number Five:  Customize With Caution!

Yes, the old real estate adage that kitchens and bathrooms sell homes is true. However, we suggest you restrain your taste–and your pocket book–if are remodeling the kitchen just to sell the house.

Remember colors and styles can quickly become dated, so stick with neutral tones and less trendy options when you choose paint, cabinetry and tile as well as appliances. Don’t risk alienating a good potential buyer with choices that are too personal or unique. Electric green is not everyone’s kitchen color choice.

You don’t want your buyers to start tallying up all the money they will have to invest to make the house suit simple tastes. Play it safe with builder-grade design decisions when you are building to sell.

Upgrade Rule to Live By:  Know Why You Are Re-Modeling

Your home can feature some little luxuries, but making it too overtly elegant or eclectic in your area, can make your house harder to sell. If you are planning to live in your home for a number of years, then by all means, enjoy the upgrades will give you and your family pleasure.

On the other hand, if you are advance-planning a move to another home, think twice about upgrades. Make choices that will actually allow you to make more profit on your listing price.  Save your perfect individualistic design upgrades and ideas for that dream house you are planning!

Happy Saint Patrick’s Day, and watch out for those little green leprechauns!