Joseph Talbot, Real Estate Broker - HOME IMPROVEMENTS THAT IMPROVE VALUES

CHAPTER 5 Don't Overdo It: Keeping Your Market Area in Mind ea in Mind

How much should you plan on upgrading during your remodel project? That depends on what you are trying to accomplish. You can, after all, spend anywhere from a few hundred dollars to tens of thousands on the very same room. We are taking up this discussion with the notion that your home remodelling has to do with getting a good return from your investment and assuming that you will be selling the house at some point in the future. If you have no intention of moving at any point in the next ten or more years, ROI does not matter as much as the return from enjoying the finished product. It seems intuitive that you would upgrade as much as your budget allows and make your home into the jewel of the neighbourhood. Caution, however, is in order here. While you will no doubt enjoy knowing that you have transformed your humble ranch into an HGTV-ready show home, such a move could backfire in a big way when you put your home on the market. Look down your street. Observe the condition of the homes and yards in your neighbourhood. Are they well maintained or a little run-down? What about the inside of the homes that you have been in? Are the interiors tastefully decorated and contemporary, or do they reflect the fashions of generations past, sporting an array of burnt orange countertops, olive green appliances, and paisley wallpaper? Generally, those who can afford an $800,000 home will look in an area surrounded by $400,000 homes. Conversely, anyone looking 34

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