David G. Brown - HOW TO REDUCE YOUR RISK IN REAL ESTATE INVESTING

a way that the garage can become a garage again with minimal cost. For example, don’t carpet it. If you want to cover the garage floor, do so with large area rugs, or if you want to use carpet, roll it out onto the surface without attaching it with glue or permanently installing it in any other way. If you have built-in storage cabinets, leave them as such instead of dismantling them to hang up the big screen.

The famous kitchen.

On paper, kitchen renovations are usually only worth about half of what homeowners spend on them — even less if you go too gourmet. New granite countertops, new tile flooring, a new brushed stainless-steel sink, and a sophisticated cabinet system with a hideaway refrigerator — these things and more might be your dreams come true, but that doesn’t make them the appraiser’s, nor potential buyers’. If remodeling is a must, treat with caution and avoid overspending. In general, the kitchen is the heart of the home, so it will impress potential buyers to have a nice one. However, you will not realize a 100% ROI on a kitchen remodel. No one is telling you to hang on to the plaster or old ceramic sink, but it would be smart to tread with caution.

Take a dip elsewhere.

Before installing an in-ground pool prior to sale in the hope of adding value to your home, think this through. Pools are for homeowners who want to enjoy them — and maintain and service them. They are not a particularly strong draw to home buyers, and don’t have a particularly good ROI.

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