What IS the best home improvement project for the best return when you sell? 

So you were watching a TV show and they said remodeling the kitchen has the best return. And then you read a magazine article that said remodeling the bathroom has the best return. But your neighbor down the street said it's revamping your landscape. 

Well, here's the thing - the best return on any investment depends on a lot of different things - 

  • Where do you live? 
  • What is the market like in your area? 
  • What is the market like for your specific house? 
  • Are you doing this improvement solely for return on the sale of the home in the near future? 
  • Or will you be selling sometime down the road. 

 

I mean wouldn't you think that any project will increase the value? Well, you're right to a degree....

Let's say you remodel your kitchen and add stainless appliances. 

 

 Or you change that weird carpet from 1982. 

 

How about painting the whole house, inside and out? 

 

These things definitely add value, and make your home worth more. 

The improvement options are endless but your budget isn't. 

Most projects cost more than they return. 

Sure, they raise the value. 

But the truth is most of the things you choose to spend money on just won't improve the value more than it cost you.

It's more like a 60-70% range of return. 

Let's say you spent $1000 on upgrades, you've improved the value of your home $600-$700. 

Even if you spend $10,000, the value only went up $6,000-$7,000. 

And that's a shock to a lot of people - often too late - after they've spent the money. 

The problem is...

Most of the time, people just decide to do some renovations because they're thinking of selling soon and they just pick whatever project they think will bring them the best return in the long run....

...without speaking to a real estate agent first.

And then they excitedly invite an agent over to list the home. They can't wait to see how impressed the agent will be. And the agent is impressed! But the homeowner is not impressed with the value the agent comes up with. Uh-oh - seems that project wasn't worth the money spent. 

And then the agent becomes the enemy. The agent becomes a schmuck. A shyster. 

The best things in life are free...

Real estate agents are often villianized for being out to make a quick buck. 

But the reality is, agents are undervalued and underutilized. 

Going ahead and doing that home improvement project because you think, heard, saw, read that's it's the best return is a huge mistake. And on the other side of the coin, not doing a project because you read a random out of state report that it only brings 58% value could be just as big a mistake. 

It depends on your area, your home, your plans. 

And a local real estate agent can help you add value that will be worth the money you spend. 

Did you know you could have asked an agent to come out to your home for free? Before you list your home. That's right. For free. 

Here's the one home improvement project that gives you the best return - 

Pick up the phone and call your agent before you do anything. Your agent will be a source of great advice, since they make it their job to know your area market and what will be a good investment to get your home sold. 

 

 

That's it for today, check back on Wednesday for a new post! Oh and leave me a comment if there's something you want to read about! 

 

*Idea for this blog and info gathered from The Lighter Side of Real Estate