While working with a buyer recently they asked me what are the home improvements that pay off? It started a great conversation about a few things:
- 1. Will they get all of their investment back?
- 2. How long are they going to live in the house?
- 3. How much will they enjoy their improvements?
Will they get all of their investment back?
The first question is always ‘when I go to sell my house will I get all of my investment back’. That always depends on the investment you make The California Association of Realtors published a nice infographic that shows the return on the investment of certain improvements. Granted these prices are for the West Coast, but the overall point is true no matter where you are selling your home.
How long until you sell you house?
If you are making home improvements today to sell your house in ten years don’t expect to get a dollar for dollar return. No buyer is going to pay a premium for the custom cabinets you installed in 2005. The point here is that those cabinets may not make the home worth more but they do make it more attractive. It will sell faster because it is more desirable but maybe not for more money. Making improvements this winter to sell in spring is a little different. When you have BRAND NEW kitchen and bath you can charge a premium, but don’t expect to get every last dollar back.
How much will you enjoy your improvements?
Think beyond the resale. If you put in new windows think about how much you will save on heating and cooling as well as a draft-free home in the winter. If you put in a new kitchen think of all of the memories of cooking with your family and enjoying the space. There is more to think about than just the ROI when you make home improvements.
Interested in the impact of a home improvement on your home’s value? Just ask me! I’d be happy to help you.