Have you ever wanted to update or remodel a room and wondered how much the improvement would increase the value of you home? If so, you are not alone. There are many common misconceptions around how much value you gain as a result of home improvements.
Homeowners often assume that all home improvements are investments. The truth is home improvements CAN be a great investment if you do your homework first. Upgrades, remodels and improvements often increase the value of your property but the question is how much ROI (Return on Investment) you should expect. Since the best (financial) surprise is no surprise you will want to make an informed decision about home improvements.
In this series, we are going to bust some real estate myths and replace them with tips for making sound financial decisions regarding your home.
The net value of your property will increase by an amount equal to or greater than the cost of the improvement.
Homeowners considering the sale of their home are often disappointed to learn that this is not true. If cost of the materials plus labor for a home improvement project is not what determines the value increase…..then what does?
What would a typical buyer pay for those improvements compared to a home without those same improvements? That is the real question and a knowledgeable real estate professional can help you answer that. Will a typical buyer pay more for a house with an updated kitchen? Absolutely! How much more? Well…that depends on several factors.
This series of posts will dig into this issue in greater detail so please check back if you’d like to learn more about cost vs. value of home improvements.