Everyone wants their home to be desirable to a buyer. The more desirable, the more money right?? Logical. But how do you know when to draw the line between upgrading for you or to sell? It's not easy to know and often times, it is made even more difficult by your location, the economic climate and exactly what you're upgrading.
As a general rule, I tell all my clients the same thing. Don't remodel your home to sell. Unless you are a builder who got the home at a reduced price or are a professional home flipper, you could be wasting money. The cost for upgrading and remodeling can be far more than the return you will get on your investment. It is often the case that sellers underestimate the amount of money it will cost to make repairs, and many times the time involved to complete projects. Many sellers think of themselves as handy, but in all honesty, leave the repairs to a professional. I'm not saying don't paint the bedroom or replace the broken light switch cover. But when it comes to rewiring the attic, or replacing the toilet, please call the appropriate professional for the job.
Here are a few statistics to help you with your decision making process.
According to Remodeling.hw.net some remodel projects are by far better than others. In 2017 some projects recouped as little as 61.9% of their cost such as adding a back yard patio while some recouped as much as 110% with a high end garage door replacement. However, not all remodels are created equal. These numbers are merely for the Pacific Coast-encompassing California, Oregon, Washington and Alaska. However, their web site does offer a comparison to the national average. The national average for 2017 fairs worse with the patio installation-recouping only 54.9% of their cost while the high end garage door replacement only fetches 85% of its replacement value.
The size of the project is also not indicative of its cost recapture. According to Remodeling.hw.net the average cost of a family room addition was nearly $105,000 however the return was merely 85.1%, while an upscale front steel door replacement was $1,516 with a cost recovery of 101.3%.
Their entire list of of comparisons can be viewed here .
As I said, I don't recommend full remodels to clients to sell. In the end, someone will come in and make the home the way they want it anyway. Exhibit #1:
Story time:
Once upon a time I had a very nice elderly client, her husband had been a builder in the '80's, she wanted to move to a smaller property. We showed her homes, updated to the latest fashions-beautiful granite counters, steel appliances, and hard wood floors. All beautiful. You can only imagine when, in the middle of a showing, after the sellers had spend thousands on their meticulous kitchen remodel, she turned to the listing agent and says "well, this is just too much money. I'd have to rip out all this stone counter and replace it with white tile, and carpet the entire home!" I thought the agent was going to faint. But, it goes to show, that not all appreciate your sense of style or taste, and regardless of what her tastes were, the remodel was clearly not worth it for her. Thankfully, she purchased something a little more her style, and the sellers of the beautifully remodeled home sold theirs. Whether they recouped their cost is unknown. However, looking at the statistics from this and previous years, probably not.
Please don't confuse remodel with repair. The two are similar but not the same. This post pertains only to remodel. Repair will be covered in another post.
Please don't confuse remodel with repair. The two are similar but not the same. This post pertains only to remodel. Repair will be covered in another post.
Don't let this discourage you from upgrading your home, however, do it for you, not someone else. If you want to upgrade your home I encourage the practice wholeheartedly. I believe if you keep your home somewhat up to date it is easier for resale, and over all you will fetch a better price.
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