Susan Ormont - RISK VERSUS REWARD: A SIMPLE GUIDE FOR INVESTING IN REAL ESTATE

• Minor kitchen remodel: 81.1%

As you can see, these are not sweeping, spectacular changes. So why are they so valuable? You should first consider where all these changes are done. Every one of these changes is on the visible exterior of the home, creating a positive first impression for potential buyers — an impression that helps set the value of the home in their minds. One other very important issue not to forget is the front entrance and front door, which is the first thing visible to the buyer. 1st impressions are always crucial. Other replacement projects with a good return include installing a new roof and replacing old windows with new vinyl or wood window frames and trim, with returns of 62% and 71%, respectively. However, when thinking about the roof replacement ROI, it’s important to keep context in mind, since some people assert that a new roof does nothing to add market value to a home. How do you square these seemingly contradictory statements? A roof is a bit like a bass player in a rock band; you often only really notice it when it isn’t doing its job. That is, a roof is not something you think about unless it is leaking or has a colony of moss growing on it. Therefore, while a bad roof can certainly detract from a home’s value, a solid, trouble-free roof is simply expected. Its chief value as a seller is how it might favorably compare with other, similar homes with older roofs that are showing clear signs of wear and tear. Don’t replace your roof with an eye toward selling unless your home clearly needs it. That said, a new roof or siding will have a better ROI than things you can’t see, such as updating the plumbing. One caveat to include is that roofing items, like energy-efficient 63

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