DECIDING ON THE FINNESSE
This is a far more complicated decision than can be fully handled in a book, as it must be evaluated on a case by case basis. So, as I will be able to provide some general guidance, the potential ROI on renovations must be studied in the context of a Comparative Market Analysis. Do not forget to consider the intangibles of the time, displacement from your home and frustrations that are inherent in major renovations. It is important to understand that the market value of a home is determined by the prices of comparable homes recently sold in the area. Extensive remodeling to sell the home or to increase the value may not pay off. The property needs to be up to the standards of neighboring homes, so while the kitchen should be comparable to others, spending $50,000 to remodel a kitchen in an area where comparable homes recently sold for $950,000 will not immediately increase the home’s value to $1 million. While it may be a helpful selling feature, it may not return dollar-for- dollar value. Many buyers are looking for move in ready homes. If you have a quality kitchen but it is not up to today's trends, then it can be a waste of money trying to guess a buyer's style with a full renovation. At best, you can renovate to current trends, which may or may not be for all buyers. If you have laminate countertops in an otherwise solid functioning kitchen, then adding granite or quartz countertops is a good decision. Your focus should be on the appliances and the basics, as we covered, in presenting your kitchen as move in ready. When making upgrades to kitchen and bath, be aware of what constitutes a substantial investment. The key is to consider the mass appeal for the sake of resale value. Let's say one homeowner 32
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