We all want the latest and greatest in kitchens and bathrooms, but it turns out that spending money on these kind of improvements might not be helping SELL your home. Think of it this way: Your kitchen may look fabulous – but if the roof is leaking, most buyers won’t look beyond that factor.
Remodeling Magazine says that you are less likely to recoup your investment on a major bathroom or kitchen remodel than you are on a basic home improvement project, like new siding. According to their study, siding replacement recovered 92.8 % of it’s cost, while 80% or more was receovered on replacing windows or roofs. The only home renovation that showed a likelihood of a good return was a minor kitchen renovation (approximately $15,000).
Remodeling’s editorial director, Sal Alfano, says that “Buyers want to take the basic sytems for granted.” In other words, when someone buys your house, they want to know that the roof isn’t leaking and that the plumbing works properly.
Bathroom and kitchen renovation are still the two best investments you can make on your house, so it’s not to say that the new granite counter you installed won’t benefit you in the sale of your home.
Here are a few things to keep in mind when considering home renovations, according to Alexandra and Vicki Restivo, Realtors with Esslinger Wooten Maxwell: What you will get back on your investement depends on the value of your house. The value of your house depends on the homes in your immediate area and the housing market in that area. It also depends on how soon you sell your house after the improvements and the quality of the project itself. For example, if your house is the only one in the neighborhood with one bathroom, it doesn’t make sense to put in a new kitchen first.
The best way to improve your house for sale is to know what has the best bang for your buck. The biggest way to do this is to make sure the first thing you do is take care of home maintenance issues like leaky roofs or broken A/C units. Most buyers don’t want to spend extra money on fixing the basics because they assume the home should already be well maintained.
MiamiRealEstateCafe is a good source for buyers and sellers… with insight and information: How to get the most for your time and money.
The next thing is a kitchen or bath renovation. These two renovations are still the biggest because most buyers will base their opinion of a house based on the kitchen or bathroom.
Also an important way to spend money is to make sure your home has curb appeal. If buyers drive by the house and aren’t impressed with the way it looks, the chances of them going in to see it are rather minute. You want buyers to feel welcome and you want them to WANT to come inside.
Adding more space is also a good investment, such as adding another room. However, the most returns come from bathroom additions according to Remodeling Magazine’s report. One word of caution is to not add so much space that you become the home at the top of the neighborhood…You want to be at the upper end, but not at the top.
Follow these tips from HGTV and you will be well on your way to spending your money where it counts and selling your house to a buyer who will be thrilled to move in. If I can help you sell your house, or help you find a home, send me a note.