CHAPTER 10 Home Improvements That Make Sense
Making small improvements can gain you thousands of dollars in your home sale. A broken-o ff 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). Th ere 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.” In 2016, a remodeling publication said the best ROI improvement a home seller can make is insulating the attic space, exceeding 100% and reaching a 116% return. However, if your home is worth $275,000 and you spend $15,000 to revamp the kitchen, don’t make the mistake of assuming the investment will increase the value dollar for dollar. Th e remodel may add value to the home, but the return in dollars spent will be around 50%. Smaller upgrades, like replacing outdated fixt ures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms isn’t wise.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 re d-fl ag or a mortgage company would demand before issuing a loan to a buyer. If you’re facing major problems like a leaking roof or 78
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