Where should i spend money to maximize value when upgrading my home ?
I meet with quite a few sellers every year to discuss their home value and most are expecting more than what their home is really worth, this is quite common and manageable.
But it does get trickier when i meet with a seller who has spent thousands of dollars on their home in areas where those funds do not generate as much of an increased return on their investment.
I recently started reading "The New Rules of Real Estate" written by Ceo and Chief Economist of Zillow.The following information is based from this book.
Here are some of the best places where you can allocate funds and make sure that it actually pays off when you go to put your home on the market (median cost of remodel and cost recovered per dollar spent) :
1) Bathroom Remodel Mid-Range / Median Cost $3,000 / Cost Recovered $1.71 for every $1 spent
This is by far the most valuable remodel you can do in a home, the key is to stay mid range as opposed to going overboard and sinking too much money which you will not recoup on out sale
2) Mid-Range Window Replacement / Median Cost $5,000 / Cost Recovered $1.15 for every $1 spent
Again, the key here is not an upscale window renovation but a mid-range upgrade which would improve the functionality of the windows - keeping out the cold better and saving a bit on heating bill
3) Family Room Addition / Median Cost $10,000 / Cost Recovered $1.07 for every $1 spent
These are the first 3 of a longer list of items to take into consideration, of course the location and where you are actually rehabbing your home in terms of the rest of the neighborhood should also be taken into account but is much more detailed therefore not included in the book.
Hope this helps and if you have any further questions on it, feel free to email them to firstname.lastname@example.org