When our clients are looking at investing in a home maintenance or remodeling project, they often ask if they will get their money back if and when they sell their house. There are many variables that affect the answer, and every project’s potential return on investment is different. My canned answer to this question is that there are four ways maintenance and remodeling projects will give you some return:
- A well maintained and updated home will sell faster than one that isn’t. Most potential home buyers want to buy a home they can move in to without the hassle of remodeling. So if your home is well maintained and updated, it will sell faster than one that looks like a lot of work and a potential money pit.
- A well maintained and updated home will fetch a better price than other homes on the market. Homes are typically appraised and sell for a price calculated on square footage. In our north Texas markets, it’s not uncommon for a well maintained and remodeled home to sell for $20.00 to $30.00 per square foot more than an outdated and poorly maintained home. This can easily calculate to a $40,000.00 to $60,000.00 difference in what the home sells for.
- The enjoyment of living in a well maintained and remodeled home has quality-of-life value. Living in a well maintained and updated home adds value in ways that can’t be measured. Peacefulness, security, comfort, and pride of ownership are just a few of the value-added benefits.
- Staying ahead of the maintenance and remodeling will save you money in the long run. Fixing things when they break is always more expensive than doing routine preventive maintenance. In an emergency situation, not only do you have that initial repair to make, but the chance of collateral damage can be great—such as floors being damaged when a hot water heater breaks.
It’s important to be thoughtful of your home improvement projects for future returns. Front doors, kitchen and bathroom renovations are the best places to realize a return in function and resale. Having top quality work done with timeless products is also smart because the renovation will have more shelf life.
Let us know if you’d like some help planning your next renovation.
Mike
