Moving on Monday
When selling your house, the question
usually arises--should I invest money in remodeling my home for a higher
selling price, or leave it as is and take whatever offer I get?
This is never an easy answer because
of the many variables. When do you plan
to move? Do you want to enjoy the
upgrades yourself before selling? How
fluid is your cash? Can you afford to
lose 50-60% on a project you undertake? Would
the house benefit greatly from the improvement even if you don’t get 90% back
on the investment?
Answer these questions honestly before
starting a project.
Should you go overboard and start
putting in high-end appliances and granite countertops if you can afford it? Or scale back and replace door fronts instead
of all new cabinets?
Before undertaking
any remodeling project, consult with a real estate agent as to the return on
investment you can expect. If a $25,000
kitchen make-over will only net you 60% return, is it worth it? Especially if a $5000 investment might net
you 110%?
According to Remodeling magazine’s recent study of the cost of various home
improvement projects versus their resale value, some of the biggest bang for
your buck is in the smaller projects.
For example, a new garage door can greatly improve a home’s
exterior. This is important when
potential buyers are driving by to determine if they want to see more. An average $1878 cost of a door yields a 62%
return. Vinyl siding can yield a 64%
return. However, a $54,000 bathroom
addition added only about 42% of the value to the selling price.
That isn’t to say you shouldn’t do any
remodels. If you will be in the house
for a while, you can certainly enjoy the new spa bathroom. But be prepared to eat 60% of what you laid
out when the house hits the market.
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