If I had a nickel for every time I was asked this question, well, I’d be retired by now. I’m asked this question all the time and many times it’s from people who have no intention of selling anytime soon. I’m usually asked this after they do some form of upgrade to their home.
I was recently in a home that had an $11,000 stove installed shortly before it went on the market. The owner thought they their house should then be worth that much more when it was put on the market. I can tell you as someone who loves to cook, the stove was really cool and I’d enjoy using it. The fact remains that the house needed a stove, but this particular house wasn’t the grand style of home that benefited from this stove as a selling feature. This brings me to sale price vs. sale-ability.
When looking at upgrades they tend to fall into two categories: sale price vs. sale-ability. The sale price of property has everything to do with the immediate area or neighborhood and the state of those properties in that area. If your home is well behind similar properties in upgrades, style, and maintenance then investing is a very wise decision.The farther behind your homes, the bigger the bang for your buck you’ll get.Upgrading a kitchen and bathroom is big for getting people into your home. Although, don’t blow the whole budget in these areas and forget the rest of the interior and the exterior.
Sale-ability is how your house stacks-up to the competition. When buyers are comparing two or more homes to place an offer on; what make one stand out? Some of the choices made in upgrades are to help you get a buyer. You might even lose money on some of these upgrades. These upgrade are “bling” for your house and many times they might be needed to give your property an edge. Some of these choices are made with your agent as part of an overall marketing plan.
As the property owner, you should take your time and investigate upgrades before you act and potentially risk creating a money pit. Work with a real estate agent and tour other houses on the market in your area. A lot of your upgrade choices need to be based on how long you plan to be in your house. Balance your choices vs. your personal goals. The best course of action is to do upgrades while you’re still in your house so you can enjoy them as personal gratification should to be part of your planning process.