June 4, 2016
How to Select the Best Home Improvements to Increase Resale Value
This story is flawed in the Cleveland Metro area and it’s home buyers.
“A couple of improvement projects are
worth dodging since you’re likely to regain just half of your investment
at resale, certainly nothing on top. Tackling a major kitchen remodel
is not in your best interest, according to data found in the book
Zillow Talk. The investment may cost $60,000 and recoup approximately 50
cents for every dollar spent. Another bust is finishing a basement. The
full renovation only yields about 48 cents per every dollar spent. And
leaving the basement unfinished could attract buyers interested in
finishing the space to their liking.”
In older homes that have out of date interiors you have to remodel the kitchen area in order to get the desired price. The kitchens I do don’t cost anywhere near $60,000, so I think this story is talking about retail contracting. Most of my kitchens we install cost somewhere around $10,000. It adds a huge amount of value to the property. In Arizona your upgrades are different and your needs for a remodeled kitchen varies via the price of home you are selling. Without these upgrades you will be discounting your home price.
Finished basements add a value to the buyer in the Cleveland area. When your looking at value of a property you need to also look from a potential buyers eyes. Finished basements with bathrooms add value to potential buyers and the extra bathroom adds value to the home. Without the finished basement and the bathroom you may not have the upper hand on potential buyers. In Arizona most homes do not have basements, but the ones that do it adds value.
“If you’re updating the kitchen,
listing features that improved sale prices included Shaker cabinets
(9.6 percent lift), farmhouse sink (7.9 percent life), subway tile (6.9
percent lift) and quartz (6 percent lift). Plus, if you’re flipping a
home, you’re paying for every day the home doesn’t sell. These features
each sped up resale by more than a month. “
This is probably true for certain homes that need those types of upgrades. For example I was in a home were they added a lot of the finishes that are mentioned above. This property was in the $500,000-$600,000 in the Cleveland area. So those types of upgrades really helped with the value of that home and without them it would hurt the value a lot. Put those same finishes in a $250,000 the buyer will love it, but you would spend to much for that kitchen in that house. Remember there are ceilings to what homes are worth.
Remember upgrades come at many different prices and brands. Having the knowledge what you should have in your home is priceless. Call Brett 216-703-5740 Howard Hanna Ohio and
602-363-6551 West USA Realty Arizona and get a free consultation on your homes needs and help save you money.