There are many upgrades you can do to your home. Some you want to do to improve your quality of life and some you do to improve the value of your home. Before you spend your hard earned dollars, please read the following. (compliments of Doug Rogers, Associate Broker with Century 21 Millenium in Louisianna.)
This post has nothing to do with personal space, taste, or comfort. One of the benefits of home ownership is NOT having to get permission to make changes to your space. Instead, let’s examine five upgrades that typically return little to no investment at the act of sale.
1) The Swimming Pool– Recently I went on a listing in a subdivision of 200k dollar homes. The owners could not wait to show me their sparkling new cement pond. How much did you “invest” in this project I inquired? Only 45,000 dollars! And wouldn’t you know it, they wanted to ask 260k for their home. At closing the pool commanded a 7k dollar premium. In other works the sellers spent 45k and earned 7k. In my mind that’s a 38k dollar loss!!!!
2) Nothing makes a better den than the garage– I cringe when sellers call me to come look at their 1800 sq. ft home in a subdivision of 1400 sq ft homes. What does this mean? Is the home taking banned growth hormones? Nope, the garage is now a “play room”. Where do guests park their cars? In the front yard of course! Want extra credit? Don’t hire a professional contractor and do the conversion yourself. I could write a book on this one…
3) Granite Counters in a Formica Neighborhood–I once toured a STUNNING 75k dollar kitchen, in a subdivision where the average price was 135k! Need to cook the perfect beef wellington? This kitchen had you covered! The home eventually sold as a short sale for just over the subdivision average. The loss on this project could have bought the owners a new BMW.
4) Any Update That Requires Borrowing Money– Even the best updates struggle to provide a dollar for dollar return on investment. Thinking of taking out a loan, or goodness forbid opening a credit card to renovate? JUST SAY NO! Credit card interest is not your friend.