Should I Update My Home?

SHOULD I UPDATE MY HOME?

This is a fundamental question facing anyone who has ever embarked on a home renovation: How likely am I to get the money I put into it back, when I sell my house? There is no easy answer, because what a buyer might be willing to pay depends on many factors — everything from the choice of the project to the materials you use, and even the value of other homes in your neighborhood.

It is important to have some idea of what your improvements might be worth before you spend your time and money. If you want to invest more than you hope to recoup because you love your home and plan to live in it for a long while, that is fine. However, if you are planning on selling within a year or less, you need to find out what home improvements give the best return on the remodeling dollar. Making small improvements can gain you thousands of dollars in your home sale. 

The following video provides a few tips and suggestions on what types of renovations should be avoided and what should be considered. 

If you are selling your home and renovations are on your mind it's worthwhile to consider what buyers are looking for in a home. Consider the following guidelines and you will avoid unpleasant surprises when it comes time to sell.

1. Neutral Paint throughout – white sells 25% faster

2. Hardwood floors

3. Updated kitchen featuring stainless steel – 75% new stainless- steel appliances can yield 100% ROI

    a. Ceramic, marble or porcelain tile backsplash – 57% ROI

    b. Shaker-style cabinetry is still popular – minimalistic is in

4. Modern bathroom – 54% to 60.1% ROI

5. Backyard patio and deck additions – 63.2% ROI

6. Energy saving features:

    a. Windows / Vinyl – 68.6% ROI; Wood 67.4% ROI

    b. Attic insulation and vents to allow heat to escape

    c. Shade trees to protect home from direct summer sun

    d. Replace siding with high R-value – 75% ROI

7. Roof replacement – tile preferable

8. Impressive exterior – curb appeal

9. Smart Home features:

    a. Smart thermostats – 77% buyers wanted

    b. Fire & Carbon Monoxide Detectors – 75% buyers wanted

    c. Smart Cameras and Smart door locks – 66% buyers wanted

The chart below provides a handy guide to gauge the value of various upgrades and renovations.

Making upgrades can be as easy as replacing the handle on your front door or as daunting as remodeling the entire kitchen or master bath. There are some things you must keep in mind about market value and ROI when updating your home to sell.  

In Geni's book, she devotes Chapter 5, titled 'Should I Update My Home?' to this subject. For a FREE copy of this book click here.