Princeton Town Topics – Let’s Talk Real Estate – October 28, 2009
WILL REMODELING PAY OFF?
Many homeowners make improvements hoping that the expense will be offset by an increase in the market value of the home. Although features such as an upgraded kitchen and a new roof add value, the cost may not be fully recouped when the home sells. Adding a new bathroom can cost between $20,000 and $25,000, but the homeowner can only expect to get back about 86% of the money invested. A major kitchen remodel costs between $40,000 and $50,000, but would only return an estimated 79.4%.
Instead of pouring money into expensive renovation projects prior to selling your home, concentrate on cosmetic enhancements. Most home shoppers are attracted to well-groomed landscaping, which can be achieved with an investment of around $500 for an average return of 266%. Spending about $300 to clean and de-clutter the interior can increase the selling price by more than $2,000. Repainting the walls in light, neutral colors will yield an approximate 700% on your investment. Making plumbing or electrical repairs will also allow you to increase the sale price.
Moderately priced home improvements that are made immediately before a home’s sale actually yield the highest returns.
