CHAPTER 6 Home Improvements ements That Make Sense
Making small improvements can gain you thousands of dollars in your home sale. A broken-off doorknob can cost a sale and a new door can make one. Making upgrades can be as easy as replacing the handle on your front door (which you’ll want to do) or as daunting as remodeling a kitchen (which you likely won’t want to do). There are some things you must keep in mind about market value and Return on Investment (ROI) when updating your home to sell. For starters, what home improvements give you the best ROI on your remodeling dollar? ROI on real estate improvement investment is generally less than 100%, so the rule of thumb is “less is more.” However, if your home is worth $500,000 and you spend $25,000 to revamp the kitchen, don’t make the mistake of assuming the investment will increase the value dollar for dollar. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms might not be wise, even though the remodel may add value to the home. 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 If you’re facing major problems like a leaking roof or outdated electrical wiring, you must either address those repairs yourself or be prepared to make major concessions on pricing to the buyer so that they’ll not have to bear the burden of major 39
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