Important Points to Keep in Mind
When you’re fixing up your fixer-upper, it’s important to take into consideration that buyers might not have the same taste or style as you — and even if they do, they only see the finished product and will have little understanding of, or interest in, what went into creating it. That brings out the need for a slightly deeper understanding of the way these statistics play out in real life. Also remember that more money spent does not necessarily mean a bigger return. For example, a relatively minor remodel of $20,000 may yield a much higher ROI than a $55,000 remodel. While buyers certainly love a large kitchen complete with island and shiny stainless-steel appliances, they won’t be as quick to assign significant value to whether it has the best hinges, custom- stained cupboards, and imported Wolf appliances that money can buy. At some point, very high-end appliances can even be a turnoff, either because the buyer is not familiar with them, or is too familiar and knows just how hard it is to get parts when they fail.
IMPROVEMENTS THAT COST MORE THAN THEIR ROI
The general public has been conditioned to view almost any home improvement or repair as something that automatically increases the value of the home and guarantee a great ROI upon selling it. But this is not always true. When deciding whether to add a new addition, fix up the basement, purchase new appliances, etc., it’s important to ask yourself: “Do I know that this project will add monetary value to my home? Is this repair a necessity, or a nicety?” There are certain repairs, renovations, and upgrades that simply will not help you make a sale.
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