home is going to look in an area surrounded by $100,000-dollar homes. Conversely, anyone looking in a neighborhood of $100,000 homes can’t afford the $200,000 you would like to charge, or they are looking for a deal. Therefore, if you go all-in and design and build the ultimate spa- getaway in your master bathroom or put in that home theater you’ve always wanted in the basement, you are not going to get that money back if you are the only home in the area with those kinds of features. Your home will sit on the market for months until you come down to a much lower price than you would have wanted. To avoid these kinds of mistakes, we recommend making use of a real estate agent to help determine the types of renovations you can pursue that will return a substantial amount of the investment cost. Your agent will already be familiar with the general standards of the surrounding area and what price ranges people are looking for. He will also be familiar with what improvements bring the best ROI, what styles are currently trending, and will have suggestions on how to accomplish them quickly, including recommendations for reputable, qualified contractors. While you may have been thinking about going full-bore and putting in granite countertops and all new kitchen cabinets — a renovation that would cost thousands — your real estate agent might talk you down to fresh laminate for the countertop and a new coat of paint for the cabinets to brighten up the room. Your remodel cost just went down from several thousand dollars and a week or two without a kitchen to a little more than one thousand dollars and a day or two of inconvenience. An agent will also go beyond your neighborhood, looking at how your home compares with similar homes in the larger area. This is important as your real competition extends beyond what you
32
Powered by FlippingBook