CHAPTER 13 Upgrading with ROI in Mind
When you’re facing foreclosure, you don’t have a lot of time (or probably money) to make updates to your home. You might not have time to make any changes at all. But if you want to sell quickly, you can do some things to improve your chances. Here are some upgrades you can do quickly and inexpensively to achieve a great return on investment (ROI).
HOME IMPROVEMENTS THAT MAKE SENSE
Making small improvements can gain you thousands of dollars in your home sale. A broken-off doorknob can cost you a sale, while a new door can make one. Making upgrades can be as easy as replacing the handset on your front door (which you’ll want to do) or as daunting as remodeling a kitchen or bathroom or even repainting the entire house (which you probably won’t want to do). The question is always: What home improvements give the best return on the remodeling dollar? Return on investment (ROI) is usually less than 100% in real estate, so “less is more.” It’s better to update/remodel your home while living in it and not solely at the time it comes to sell. That way, you get more enjoyment from the improvement and less cost in preparing for sale. Some desirable upgrades or home improvements will not return their cost in the sale price. In 2016, a remodeling publication said the best ROI improvement a home seller can make is insulating the attic space, with a 116% return! But if your home is worth $275,000 and you spend $25,000 to revamp the kitchen, don’t assume that the investment will increase the value dollar for 109
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