If you've been putting off selling your home to do renovations, THIS IS A MUST READ! Each geographic area is different, but before you start, know what your return on investment is likely
7 Ground Rules To Recouping On A Remodel
NEVER spend more than you can recoup.This seems obvious, but you'll be amazed how many people decide to throw vast amounts of money into a house that they will never again enter for the rest of their lives. Why spend $4,000 on new flooring if the resale value is less than that? Unless, of course, no one will even make an offer on your home without some cosmetic improvements.
Look for profit potential.This rule is more to the point. Some home sellers consider it a success to spend $7,500 on a bathroom remodel if they recoup $7,500 from the sale. But does it really make any sense? You've invested time, headache, effort. . . for no net gain. Why bother?
Prioritize kitchen and bathroom remodeling.Any big expenses should go into the kitchen and bathrooms over other rooms. These are the improvements most likely to recoup their costs and create actual equity.
Limit hard costs in favor of DIY costs.Laying new solid hardwood at $19.99 per square foot is a hard cost--very hard. But borrowingan orbitalfloor sander and sanding floors yourself is a soft cost.
Refurbish rather than replace.Like the previous cardinal rule, don't give your home buyer with any actual new materials, if you can avoid it. Why hand over 1,200 square feet of Braziliancherrywhen you can merely refurbish your existing floors?
Stress appearance, not function. Sad to say, but it's better to put that $800 into paint or flooring, rather than a new water heater. As long as the water heater is functional, keep it. A new water heater will not impress buyers. If a home inspector eventually says the water heater must be replaced, you can always replace it then, or knock off an equivalent amount from the sale price. But appearance is something that is not negotiable, and in fact is something that may only register with home buyers on a sub-conscious level.
Paint works wonders.New paint, especially well-chosen and contemporary hues, will transform a house. Be careful of deep colors.
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