CHAPTER 6 Upgrading with ROI in Mind OI in Mind
Making upgrades can be as easy as replacing the handset on your front door or freshening up the paint job, or as daunting as remodeling an entire kitchen or primary bath. The question always is, what home improvements give the best return on the remodeling dollar?
Some desirable upgrades or home improvements may not pay off at resale, so homeowners are encouraged to pursue projects that offer personal enjoyment and functionality while they live in the home. That way, there is more enjoyment in the improvement, and less time and cost in preparing for the sale. Any investment made adds daily value to their lifestyle—even if it doesn't translate into a full return at the time of sale. If your home is worth $275,000, and you spend $25,000 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%. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms is not generally advised. That doesn’t mean you should overlook essential repairs—especially those a home inspector or lender would flag. If major problems exist, you may want to repair those before putting your home on the market, or expect to give concessions 31
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