Home Updates & Renovations: Figuring Cost vs. Value
Let’s talk home updates. It’s a popular subject among friends and clients. It’s also a subject that leads to a lot of questions, especially coming from those considering putting their home on the market. Certain home updates can lead to a quicker sale at a higher price, however, it’s important to understand cost of renovations & upgrades vs. value added from renovations & upgrades.
It doesn’t always translate dollar for dollar.
I had some friends recently renovate their kitchen. They knocked down a wall that enclosed their original galley style kitchen, and by doing so completely transformed the entire flow of their home. The kitchen now features tons of extra counter space that allows for bar stool seating, plus flows openly into the dining room and allows visibility into the living room. During the renovations, they also added new modern cabinetry, quartz counter tops, and stainless steel appliances.
When they go to sell their home, this does not mean they will be able to mark their home up ‘x’ amount for whatever this kitchen remodel cost them. It does however mean that their home is going to show 100% better than it did before, and will appeal to a higher percentage of buyers, which ultimately translates to a higher sales price and a quicker sale. Because they chose reasonable finishes for their price range, the kitchen was a great investment in their home.
Updates and renovations highly depend on your homes price range and location. You never want to overdo it for your price point or neighborhood.
For example: Your home is located in a neighborhood that yields a max of $150k, and most homes have moderate finishes. Don’t go spend $30k on travertine tile, granite counter tops & custom cabinetry and then expect to sell for $180k. It’s not going to happen. Instead, go through your home & make sure finishes are neutral and in good condition. This might mean small updates like new hardware & fixtures, new carpet if yours is dated and worn, and neutral paint.
Certain updates are not always going to translate as added value to buyers.
When considering updates, keep in mind that you want to appeal to the majority and you want to meet the buyer's general expectation for your area. For example, that unique imported Italian back splash may mean added value to you, but most buyers are not going to know or care. They would be just as happy with a simple ceramic subway tile. Don’t overpay for very specific improvements that appeal to you, but won’t appeal to the masses.
I could go on and on with this topic, but at the end of the day every home and situation is different. You need to consider a lot of factors when deciding on what updates and renovations are a good idea for your home. Better yet, call our team and we will help you make a smart, informed decision.
