return.
However, if your home is worth $275,000 and you spend $15,000 to revamp the kitchen, don’t assume the investment will increase the value dollar for dollar. The remodel may add value to the home, but the return in dollars spent will be around 50 percent. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms isn’t wise. Don’t ignore repairs that a home inspector would red-flag or a mortgage company would demand before issuing a loan to a buyer. If you’re facing major problems like a leaking roof or outdated electrical wiring, you must either address those repairs yourself or be prepared to make major concessions on pricing to the buyer so that they won’t have to bear the burden of major repairs as well as the price of the home. Keep in mind that the market value of your home is determined by the prices of homes recently sold in your area. Remodeling your kitchen to outshine others might not get you more money for your home, especially if it exceeds the market value buyers are willing to pay. You could spend more money than you’d make in return. It’s possible to “over-improve” a home beyond the value of an area by putting so much money into improvements that it would be impossible to recover it. STARTING WITH THE BASICS
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