You have decided to stay put and implement some upgrades/improvements to your current home. But, where should you spend your money? What will bring the most value to you when you eventually opt to sell? The answers to these questions can vary depending on where you live. For instance, here in the Arizona desert, a private pool is a desirable amenity but probably not so in Alaska. A screened in porch would be an asset for the humid areas of the southeast. Of course, improvements that improve efficiency such as dual pane windows or solar water heater are always a plus in any market. But, what about room additions, kitchen or bath upgrades, new flooring….
One of the examples I will always remember from my experience at real estate school many years ago was regarding the issue of home improvement. The instructor gave the scenario regarding a seller who had done some extensive remodeling/upgrading and wanted a significant compensation for his efforts is to be reflected in his selling price. The Realtor asked the seller if he had been on vacation that year. To which the seller replied ‘yes’. Then the Realtor followed with ’Did you enjoy your trip?’ Again the seller replied with a positive answer. Finally, the Realtor asked the seller if the seller had expected to be reimbursed for part or all of his vacation. The seller responded ’No’. Then the Realtor explained that the same was true for the upgrades/home improvements that the seller had added. The seller got enjoyment of them but should not necessarily expect to be refunded in full for the expense of installing them.
There is no magic answer to what/where to spend your money with home improvements, but there are some average costs vs value statistics available to give you some guidelines as to where to invest most productively. The December 2008 issue of Realtor.org magazine has an excellent article titled “2008 Cost vs. Value Report: Still Many Happy Returns for Home Rehabs” with some great projects provide a good recovery of your investment.
In any case, do not over spend for your particular neighborhood! If you are unsure of what the average home is selling for in your neighborhood/subdivision, contact a local Realtor and ask for the latest comparables of what similar homes are selling for in your area. This will give you a ‘baseline’ for how much you may want to invest in your upgrades. Then enjoy your new improvements.
When looking to buy and/or sell, or know of anyone that is, feel free to contact us.
Gary Scott -Realtor®, GRI - - Claudia Scott -Realtor®, GRI , e-PRO
Call Toll Free at 866-464-2140
or
e-mail -Garyandclaudia@cox.net
www.AZ-real-estate-sales.com
Call Toll Free at 866-464-2140
or
e-mail -Garyandclaudia@cox.net
www.AZ-real-estate-sales.com
