Ever had one of the dilemnas below?
I'm thinking of putting my home on the market and want to know what areas I should improve to get the best return on my money?..or..I'm not moving, but have a little extra money available that I would like to invest back into my home, where should I invest it for the best return on its value?
The above are common scenarios that many of us may encounter each year and yet don't quite know the best answer to the questions. Today I'm going to discuss with you what some of the WORST improvements based on return that you can make to your home. In my upcoming blog, you will hear what the BEST improvements are that you can make to your home based on expected return, so stay tuned!
Some of the Worst Home Improvement Projects for Your Money (note that these are best examples here in the Mid-West. Regionally this varies significantly)
1) Home Office Remodel - Owners remodeling a home office can recoup on average less than half of the investment made into this. Reason being is that while the office may be very important and vital to you, to another buyer that may not work from home or do it as often, that space is not as important to them. Some may see it as an added expense to revert it to a much needed bedroom, or space with some other need in mind.
2) Swimming Pools - Let me first start by saying that during an extremely warm and humid summer like we are having this year, I'd love a pool! That being said, pools can be very costly and are not easy to maintain. While the pool that you install may get great use from the children or by you and your family, the next owner of your home may not see it as a positive. Pools can cost from close to 30-40 grand when you factor in the fence, pool, landscaping etc. to as much as 100K or more. Knowing that this investment is best returned in the joy it brought to you and your family and not in its resale will save you much distress later on.
3) New Roof - Yes we all know that a roof is paramount to your home and its vital that
its maintained and in good condition. A poor roof is instantlly seen by a buyer and the cost to replace the roof or put a new layer of shingles on it is directly proportionate to their offer. However, that being said, when a new roof is put on, don't expect the value of your home to be reflected in the price you paid for your fancy new architectural shingles. Its one of those investments that protect the well being of the rest of your home and is expected to be in quality condition when a buyer purchases your home.
4) Sunroom Addition - Who doesn't love a sunroom? I know I do but the cost to have one built on a home generally only reflects in a 51% return on your investment. Want another option that has been gaining popularity? Adding on to a family room or building a guest/mother in law suite.
5) Garage Addition - Homeowners who build an addition to a garage can expect a return on your investment of less than 62%. The versatility of a garage doesn't always reflect its high cost. In order to do it properly your employing contractors to lay a slab, construct walls, build a roof, install electric and more. This all adds up and at the end of the day, the money could have been better invested else where in the home.
6) Bathroom Addition - But I thought bathrooms were extremely key when selling homes you say?? Yes they are, but updating a bathroom and building out a new one are two different things. While adding a bathroom if there are few can certainly help sell the home, the costs can be very high. Realize that unlike a close space, when you build out a bathroom, you are now reconfiguring plumbing, electrical, air conditioning, heat, fixtures and more. Often this build-out can be ten's of thousands and the return is generally much less.
Hope you found the above blog today useful. If not today, possibly in the future you'll need to invest into your home and knowing what not to do, can often lead to a more successful sale by using your money for better alternatives. These better options we'll discuss in my upcoming blog!
I'm thinking of putting my home on the market and want to know what areas I should improve to get the best return on my money?..or..I'm not moving, but have a little extra money available that I would like to invest back into my home, where should I invest it for the best return on its value?
The above are common scenarios that many of us may encounter each year and yet don't quite know the best answer to the questions. Today I'm going to discuss with you what some of the WORST improvements based on return that you can make to your home. In my upcoming blog, you will hear what the BEST improvements are that you can make to your home based on expected return, so stay tuned!
Some of the Worst Home Improvement Projects for Your Money (note that these are best examples here in the Mid-West. Regionally this varies significantly)
1) Home Office Remodel - Owners remodeling a home office can recoup on average less than half of the investment made into this. Reason being is that while the office may be very important and vital to you, to another buyer that may not work from home or do it as often, that space is not as important to them. Some may see it as an added expense to revert it to a much needed bedroom, or space with some other need in mind.
2) Swimming Pools - Let me first start by saying that during an extremely warm and humid summer like we are having this year, I'd love a pool! That being said, pools can be very costly and are not easy to maintain. While the pool that you install may get great use from the children or by you and your family, the next owner of your home may not see it as a positive. Pools can cost from close to 30-40 grand when you factor in the fence, pool, landscaping etc. to as much as 100K or more. Knowing that this investment is best returned in the joy it brought to you and your family and not in its resale will save you much distress later on.
3) New Roof - Yes we all know that a roof is paramount to your home and its vital that
its maintained and in good condition. A poor roof is instantlly seen by a buyer and the cost to replace the roof or put a new layer of shingles on it is directly proportionate to their offer. However, that being said, when a new roof is put on, don't expect the value of your home to be reflected in the price you paid for your fancy new architectural shingles. Its one of those investments that protect the well being of the rest of your home and is expected to be in quality condition when a buyer purchases your home.
4) Sunroom Addition - Who doesn't love a sunroom? I know I do but the cost to have one built on a home generally only reflects in a 51% return on your investment. Want another option that has been gaining popularity? Adding on to a family room or building a guest/mother in law suite.
5) Garage Addition - Homeowners who build an addition to a garage can expect a return on your investment of less than 62%. The versatility of a garage doesn't always reflect its high cost. In order to do it properly your employing contractors to lay a slab, construct walls, build a roof, install electric and more. This all adds up and at the end of the day, the money could have been better invested else where in the home.
6) Bathroom Addition - But I thought bathrooms were extremely key when selling homes you say?? Yes they are, but updating a bathroom and building out a new one are two different things. While adding a bathroom if there are few can certainly help sell the home, the costs can be very high. Realize that unlike a close space, when you build out a bathroom, you are now reconfiguring plumbing, electrical, air conditioning, heat, fixtures and more. Often this build-out can be ten's of thousands and the return is generally much less.
Hope you found the above blog today useful. If not today, possibly in the future you'll need to invest into your home and knowing what not to do, can often lead to a more successful sale by using your money for better alternatives. These better options we'll discuss in my upcoming blog!
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