Making Your Home Improvement Dollars Count

Posted on

Apr 03, 2018

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To update, or not to update: that is the question.
The question real estate agents repeatedly hear from homeowners is, Why would I do anything to my house if Im going to sell it anyway? Conventional wisdom tells us that we should avoid doing anything to our homes that the new owners may not like and will change the moment they move in. The reality is much different, however. Because home prices have risen so dramatically over the past five years, homebuyers have little to no money to improve the home they just purchased. With the cost of borrowing money currently so low, buyers dont mind spending more if the home is move-in ready.

When evaluating where to spend the money, assign your projects into two categories: 1) deferred maintenance and 2) cosmetic improvements. Deferred maintenance should take priority: a furnace that is on its last leg, a leaky faucet, or a deck with peeling paint are some examples. Addressing these will not precipitate a high return on investment (ROI), but ignoring them will significantly decrease your sales price, and may even turn away buyers from considering your home. Once priority items are completed, consider budgeting for cosmetic items, which will bring the highest ROI. Home design trends are cyclical and what was in style last year may not be next year. Focus on updating the appearance of your flooring and paint. Your current carpet may last you another 10 years, but nothing transforms a space more effectively than new carpet. Carpets that are a mix of neutral beiges and creams are the most appealing to the buying public. Be careful not to spend more than $5 per square foot for carpet, pad, and installation. The cost to replace carpet typically brings a three-to-one ROI at the time of sale. When combined with new paint, new flooring gives a property a new home smell, neutralizing the evidence of years of living, cooking, and even smoking. Fresh, neutral paint also enhances the appearance of a home, providing a blank canvas that allows a homebuyer to easily visualize their own dcor and furniture in the home.

Editors Note: This article was submitted by Blair Bryant of The Steller Group at Keller Williams Realty. He may be reached at 720-593-9355

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