Remodeling ~ Is it Worth the Expense?
Remodeling is big right now, not just as a selling tool but with so many working from home this year, many are noticing things around the house that are in great need of an upgrade.
This home is a great example, as it increased the value as well as helped it sell quickly. It went under contract in just 48 Hours with 9 Offers
Here are some things to think about:
If you are upgrading hoping it will add value to your home, Homelight says only expect about 65% - 70% return on your investment. Here a few examples ...
- Kitchen Remodel: You will only recover about 52% of your expenditures, but most REALTORS® say it will speed up the initial offers by 20%.
- Hardwood Flooring: You will usually recover 100% of the monies spent and will increase your sales time by about 5%.
- Attic Insulation: Amazingly this normally recovers about 107% of your investment, but doesn't seem to help the home sell any faster.
If you remodel your kitchen and it cost $25,000 but only increase the sales value by $13,000 then it doesn't make sense to update. Is it a tough market where homes are sitting for months or longer and you need to sell your home quickly, then maybe it is worth the money to get the sale. Are you planning to live there for another few years and want to enjoy the upgrades before you go? This is another good reason to go ahead with the remodel. All situations vary.
The First & Most Important Projects:
Really, the very first and most important thing, is to get the buyer to either click on your online photo or stop and get out of the car for the walk-thru. Both of these things are dependent on the EXTERIOR of the home. Research has found that your money is best spent on the curb-appeal. This will normally be less expensive then any of the indoor remodeling.
- Paint the Exterior
- Buy a new Garage Door
- Trim the Trees from the Roof
- Cut the Grass
- Plant some Foliage & Flowers
This is the image they will see online and in-person when they drive up. If you can't get them to click or come inside, they will never see the updates you have made to the interior.
The interior updates don't have to be a full-blown remodel; paint, update the fixtures and possibly the counter tops. The main thing is CLEAN and repair the small stuff like cracked ceiling plaster.