My friend Tal called me the other day. A carport in his backyard blew over, and he wanted to know 1) if he should replace it, or 2) if there was an option that would better increase the overall value of his property. I told him a carport is, well, kind of boring, and that replacing it would be a practical option, but nothing more. I suggested he think of a carport as dress socks; you may need them, but you’re not going to fall in love with it.
A carport elicits no emotional response; a buyer won’t fall in love with a carport. And if a buyer won’t fall in love with it, it has limited market value. I recommended Tal invest a bit more money and instead build an also functional, but much more attractive (and emotion-inducing), ‘studio’/storage shed. This kind of structure still makes great use of the backyard space, but, built the right way, gives a person something to fall in love with. Emotion/love = increased market value.
What I’m talking about here is hard to define. The best metaphor for this emotion that I can think of is falling in love. Starbucks and Whole Foods, for example, spend millions to elicit this response from you, and the smartest builders pour more resources than you might imagine into making their model homes perfectly easy to love.
Don’t get me wrong; there is (market) value to be had if an improvement serves a function (added square footage, a covered parking spot for your car, etc.), but elicits no emotion. But the problem is if you don’t make the change ‘lovable,’ there is an excellent chance you will put more into the improvement
If you’re planning an improvement to your home and if you would like to know how (or how much) it will affect market value, give us a call — we’d love to help.