CHAPTER 8 Upgrade with ROI in Mind OI in Mind
Making upgrades to your home can be as easy as replacing the handle on your front door or as intensive as remodeling a kitchen or bathroom. There are some things you must keep in mind with regard to market value and return on investment (ROI) when updating your home to sell. What home improvements give you the best return on your remodeling dollar? The return on investment is generally less than 100% in real estate, 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, with 116% return. If your home is worth $275,000 and you spend $15,000 to revamp the kitchen, don’t make the mistake of assuming that the investment will increase the value dollar for dollar. The remodel may add value to the home, but the return in dollars spent will be around 50%. Additionally, although you find a remodel to be tasteful, anything done on a budget with the intent to sell is likely not going to have the level of attention to detail that most prospective homeowners would have, were they do the upgrades. It also may not be done in the colors that the buyers would have selected. Just because you think dark cabinetry with light countertops is a good fit for the house does not guarantee that buyers will feel the same way. I once overheard buyers speaking via a Ring® doorbell camera and the conversation was certainly not in the seller's favor. Against my recommendations, they had moved forward and done a kitchen renovation prior to sale. They had used cheap light wood cabinetry, added a dark, very "run of the mill" granite, and decided to accent this with deep blue walls. The buyer's conversation was candid, as they believed they were speaking in private with their agent. At one point, a buyer 58
Powered by FlippingBook