Selling Soon? Discover the 1% Rule for Top Dollar Returns

By Steph Anderson

We are passionate, ambitious people who want to do everything we can to help others experience amazing things through real estate! With annual sales of over 25 million, we have the connections and marketing down to bring you top dollar for your home as well as hunt out the perfect future home for you!

Have you heard of the 1% rule in real estate? It can be a practical guideline to help maintain and enhance your home’s value without going overboard. Today, I’ll delve into and explore the intricacies of this rule, shedding light on how it can benefit homeowners and property investors alike.

In a nutshell, this rule suggests investing 1% of your home’s value back into maintenance and improvements. This not only keeps your home in great condition but also ensures you don’t end up with a long list of tasks right before selling.

The 1% rule isn’t just about maintaining your home’s value. It’s also about enjoying the updates and improvements while you live there. Well-maintained homes tend to appreciate by around 4% to 6% every year. Neglected homes, on the other hand, often end up on the lower end of that scale and require significant updates before going on the market.

Our goal is to have clients enjoy the benefits of these improvements while still living in their home. My recommendation is to use 1% of your home’s value per year as a basis to keep your home current, which is a practical and cost-effective way to maintain your investment.

Some of my favorite updates include statement-making light fixtures, updated flooring or carpet, and fresh paint colors. Consistency in flooring throughout the home is crucial to appeal to potential buyers.

For example, having multiple types of flooring can overwhelm buyers and potentially backfire on resale value. I’ve personally managed over 50 homes, both rentals and personal homes, and found the 1% rule to be a great guideline.

If you’re buying a fixer-upper or looking to build more equity, we should discuss the updates that will provide the best return on investment.

The benefits of the 1% rule are clear: it helps maintain your home’s value, enhances your enjoyment, and maximizes your real estate investment. Whether you plan to sell in the future or simply want to live in an updated space, the 1% rule can help you achieve these goals.

If you want more details on this topic or have other real estate concerns, please don’t hesitate to call or email me. I’m always happy to provide recommendations or contractor referrals to add value to your home. You can contact me at (402) 980-7972 or via email at jamie@bigpicturerealestategroup.com.