It may surprise you to know that almost NO home improvements ever increases the sale price of a home enough to cover the costs. THAT IS if you examine those costs in a vacuum. Here is the value from a study by Home Tech Publishing. But read below to see why you may want to make a different decision about what and when to improve.
Entry Door Replacement Cost $1,238 Resale Value $903 % Recouped 73.0%
Kitchen Minor Remodel Cost $19,588 Resale Value $14,120 % Recouped 72.1.0%
Garage Door Replaced Cost $1,512 Resale Value $1,087 % Recouped 71.9%
Window Replacement Cost $14,328 Resale Value $9,898 % Recouped 61.0%
Bathroom Remodel Cost $16,552 Resale Value $10,293 % Recouped 62.2%
(see www.costvsvalue.com for over 35 projects and their values)
You can improve your home while you are living in it and sometimes the savings, pleasure, security, or livability is improved in a way that makes it all worth it. Here is an example. Replacing your single pane windows for dual pane will generate cost savings on your winter heating and summer cooling bill. Also it can reduce noise from outside the home. It makes the home look better. If you are having trouble with your back, you could also be giving up tugging and pulling at old windows. And the frustration of looking at a window that is a pain (yes I know, not punny) well, it gets better.
Replace your front door with a steel door and it can improve security. A garage door that squeaks and grinds it’s way up the hill is very annoying. And doesn’t sitting on the commode looking at the chipped tiles on the floor just grind away at you?
Well, even when you sell a home it may pay to upgrade and update. If your kitchen has Formica counter tops – today’s buyers want stone. They want it so badly that they have come to accept that as the normal. Even Corian is not desirable for most. They see granite and they want granite. They don’t see granite and what they do see is a “project.” Many buyers today are very busy people and the last thing they need in their lives is another project. Many times, even when they ask for a “fixer,” we look at a few of them and suddenly the house with the updated kitchen looks very good indeed.
The difference is this: you may have a cost of $5,468 dollars over and above what it adds to the house but the house might not sell at all if it was still cloaked in Formica. OR you could end up being negotiated down on the total price. That is because most buyers, especially young buyers, tend to more than double the estimate of what the replacement would cost them.
SO IMPROVING YOUR HOME BEFORE THE SALE ADDS VALUE TO YOUR LIFE AND SHOULD ADD VALUE TO THE SALE AS WELL. ENJOY NOW AND PROFIT LATER! THAT IS A WIN WIN.