CHAPTER 8 Upgrade with ROI in Mind OI in Mind
MAKING SMART UPGRADES TO MAXIMIZE VALUE
Upgrading your home can be as simple as replacing the front door handle or as complex as remodeling a kitchen or bathroom. When preparing to sell, it’s essential to consider market value and return on investment (ROI) before making any major updates.
FOCUS ON COST-EFFECTIVE IMPROVEMENTS
Not all home upgrades will yield a dollar-for-dollar return. In real estate, the general rule is “less is more.” Minor improvements often provide better ROI than full-scale renovations. For example, HGTV reports t ts that minor bathroom upgrades—such as recaulking, replacing outdated fixt d fixtures, upgrading the shower door, and applying a f g a fresh coat of paint—can yield a 102% ROI. On the other hand, major remodeling projects often have lower returns. If your home is worth $1.2 million and you spend $75,000 remodeling the kitchen, it’s unlikely that the home’s value will increase by the full amount. Industry estimates suggest that a kitchen remodel typically yields only a 50% r y a 50% return on investment. Smaller updates—like swapping out dated light fixtures, cabinet hardware, and faucets—can enhance appeal without excessive cost.
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