Return on investment in home upgrades?
There is for sale as is. Then there are upgrades or updates which are not because repairs are needed but rather to sell at a higher price due to trends in what buyers are looking for. What return on investment should be expected on things like color of walls, type of flooring, new kitchen appliances, cabinet color, cabinet tops, bath vanity new roof. At some point ROI may become dollar for dollar and it will be time to stop.
- SlumlordLv 73 months agoFavourite answer
Really, anything to fix something that is truly broken or just looks bad, it probably worth doing. Nobody wants to move into a beaten up looking house that needs repair. Cleaning and painting and even carpet are so cheap (with the right contractor) that they are almost always worth the cost.
Anything that actually adds to the house (like new walls or a new bathroom, or whatever) is probably not going to get you back the cost to do it unless this address an obvious flaw (hey, there is no HVAC on the top floor of a cape cod) or adress some sort of obsolessence (a large 5 bedroom hosue with just 1 bathroom was ok 80 years ago, but not today)
- SlickterpLv 73 months ago
Kitchens and bathrooms you will get good return on. Wall color, etc, not so much.
- Casey YLv 73 months ago
You wont get even dollar for dollar on the majority of your capital improvements.
Renovating or flipping a house on spec is risky business and sometimes, you end up with a loss anyway.
One thing to note, dont forget to include the carrying costs when looking at renovations. You dont just pay for another month of renovations, you pay for another month's worth of taxes, mortgage, insurance, utilities, etc.