Q: From a value standpoint, how much faith should sellers put into their home upgrades?
A: Typically most sellers don’t recoup their upgrades. So you have to come to the realization of whether you are upgrading to sell or to enjoy it.
We had put hardwood floors in one of our homes, and we did not recoup those costs, but we enjoyed it.
Kitchens and bathrooms are great for remodeling because that is where the most time is spent in the home. Though you have to be economically sound before you start throwing money into the home. If you are selling your home, you need to be aware of how the market is. Ask yourself, “Is this upgrade going to bring money in?” Typically, it may cause your home to sell faster because it is the “shiny diamond” on the block. But if you think that you are going to get more value from your upgrade, that is going to be a hard sell.
I’ve seen situations where the seller has rehabbed a home, but they rehabbed it out of the market. That was a tough situation because there was the appraisal issues to deal with because there wasn’t a comparable home available.
You should upgrade a room because you want to. I wouldn’t want my sellers spending a lot of money on a space when it doesn’t need an upgrade unless it’s in a horrible condition.
There are a lot of other adjustments that’ll make your home that “shiny diamond” in the neighborhood.
— Sandra Marconi, Keller Williams Realty Metropolitan
Local Advertising by PaperG