Today I want to talk to you a little bit about a question I’ve been hearing a lot lately, which is: “What kind of return do I get on my home improvement investments?”
Actually, the answer has two parts: the statistics and the truth. First, I’m going to start off with the more boring part: the statistics.
Any time you do a major remodel such as a kitchen or a bathroom, you’re going to get about a 92% return on your investment. This means that if you spend $15,000 on a kitchen, you’re going to get $14,000 back.
Now this may be what statistics say will happen, but the truth is that you really can’t predict your exact returns. Until you put your house on the market and see how market conditions affect it, there’s no telling what will actually happen.
With that being said, there are certain factors that will boost the value of your home updates. If you and your neighbor are both selling your homes but only you have made any updates, your house is going to be more desirable.
Nevertheless, people tend to forget about the important things. When making repairs and updates to a home, there are a lot of “non-sexy” fixes that can’t be overlooked. Things like leaky faucets and peeling paint need to be taken care of before you can focus on more exciting updates.
You’ll also want to make all necessary repairs or updates to your AC, furnace, or siding. These all yield about an 80% return and will be important to the buyer.
Although we all like fixes and updates to things like kitchens or bathrooms, there are a lot of smaller items that are equally, if not more, important.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.