CHAPTER 5 Upgrading with ROI in Mind OI in Mind
Upgrading your home to prepare it for sale can range from small, budget-friendly changes, like replacing a front door handle, to larger, more intensive projects, such as remodeling an entire kitchen or bathroom. The key question to ask before making any upgrades is: What improvements will yield the best
return on investment (ROI)?
The ROI Rule: Less is More In real estate, ROI is rarely 100%. This means spending $10,000 on a kitchen remodel doesn’t guarantee a $10,000 increase in your home’s value. Because of this, it’s often advised to make upgrades throughout your time living in the home so you can enjoy the improvements, rather than tackling costly remodels solely when it’s time to sell. For instance, if your home is valued at $700,000 and you invest $100,000 into a kitchen remodel, you might see a $50,000 increase in value—not dollar for dollar. Smaller, thoughtful updates tend to deliver better ROI and make your home more appealing to buyers. Focus on Necessary Repairs While aesthetic upgrades can boost appeal, necessary repairs are non-negotiable. Issues like a leaking roof, faulty electrical wiring, or plumbing problems should be addressed before listing 25
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