Not always. And some housing upgrades may not be worth the expense. When contemplating a major investment in your home, it is always wise to consult your Realtor® who will know what excites buyers and what doesn’t.
Don’t over-improve your home relative to your neighborhood. Kitchens, for example, may not return all the money you have invested in them. If the homes in your neighborhood don’t have granite countertops, stainless steel appliances and all new cabinetry, these upgrades in your home may not return what you invest in them if other homes have more moderately priced appliances and finishes. They will make your home more marketable and sell faster.
Consider the maintenance involved in your proposed upgrade. Buyers weigh the time, energy and expense involved in maintaining a home, especially today when downsizing to smaller homes is more appealing to buyers. A swimming pool, for example, is both a costly and a high-maintenance feature that will limit the number of buyers for your property when you’re ready to sell.
It’s also possible to make your home “too personal.” A décor with dramatic colors, a specific theme taken to extremes or an awkward room configuration may turn off buyers whose tastes are different and who cannot envision themselves living in your home. Instead, they may see your home as a mass of work to change the décor to one of their liking. Improving your home with a particular flair runs the risk that when you do sell, your improvements may not lead to additional dollars for your home.
The Cost vs. Value Survey, an annual survey by Remodeling Magazine, in conjunction with REALTOR Magazine, suggests remodeling projects that attract buyers and offer sellers the biggest returns at resale. Topping the list is Entry Door Replacement with a steel door followed by Garage Door Replacement. Both of these involve nominal cost and minimal upheaval. Third on the list is Siding Replacement with fiber cement siding. More costly than the first two, buyers will see the long term value of this improvement to your property. Nationally, sellers recoup 80% of their cement-siding investment.
The final two projects are Minor Kitchen Remodel and Wood Deck. “Minor” changes in the kitchen include replacing cabinet fronts and drawers and adding all new hardware. A new energy-efficient stove and mid-priced sink and faucet combined with mid-priced counter tops and new resilient flooring complete your upgrade. Repaint the trim and walls. The national average for a minor kitchen remodel was an initial cost of $21,700 that recouped 72.8% or $15,800 at resale.
In my experience, sellers seem quite surprised that they won’t recoup 100%+ on their improvement. So I remind them that buyers expect homes to have a roof, hot water heater, stove and furnace. They are willing to pay more for a home where these are newer, but not the entire expense. When contemplating an upgrade to your home, make certain that you and your family will enjoy it, and also look at its potential for attracting your future buyer. Call your Realtor®, ME, for suggestions.
My goal is helping you maximize the value of your home for your personal enjoyment and for future resale. If you or anyone you know has questions about upgrades, please call me. Check out all current listings on my website, www.JudyMillerRealEstate.com. This is an excellent market for buyers, so be sure you call me and move forward – now.
