I published an article years ago entitled, “Renovation or Relocation . . . That is the Question.”
Still today, one of the greatest pastimes of many homeowners is to snuggle up to a new episode of “The Property Brothers” on HGTV and watching Jonathan turn an old house into a gem and Drew putting it on the market for top dollar.
In 2017 “Home Staging” has once again emerged as the buzz phrase among Real Estate professionals.
The website: http://www.remodeling.hw.net/cost-vs-value/2017 is packed full of nationwide remodeling information by region. For instance, in 2017, a major kitchen remodel would cost about $59,000, the resale value would be about $45,000 or the cost recouped by the seller would be 77%. The fact that you could enjoy that new kitchen while deciding to put your home on the market is part of the equation.
A home addition, such as a family room totaling $83,000 would bring about a 96% cost recouped from the resale while a bathroom remodel cost recouped is 73%.
I would strongly urge you to visit the website to peruse the various project types, costs, resale value and cost recouped while you consider whether this is a task you want to undertake.
Homes remodeled certainly sell more quickly than the competition that touts “original” or “handyman special” – because typically, unless there is a contractor in the family, most do not want to undertake this inconvenience. Renovation television shows remind you that the cost quoted and the actual completed cost could vary – because the contractor has discovered other issues as the renovations take place.
Renovations to Avoid. According to RISMedia.com, there are three renovations that have little-to-no payoff value:
1) Luxury Add-ons: An indoor basketball court, wine cellar, sauna, or home theater.
2) Swimming Pool: The average cost of a new pool is $39,084, a hefty price tag that is seldom recovered once the home is sold.
3) Gaudy Accents: Gold-plated crown molding, mosaic-tile backsplashes, and artistic mosaics in the tile floor often turn off the average homebuyer. A home valued at $600,000 after all the renovations will not sell in a neighborhood where homes are netting half that price.
I currently went to an open house in our area where a home was remodeled to the “9s” in a neighborhood typically priced from $300,000-$400,000. This residence was totally remodeled, practically rebuilt, and doubled in size. The price tag is currently $700,000. I will be curious as to when and if it sells and for what price.
Over-improvement is worse than no improvement. A neutral palette (with bold colors and tones in accent pieces) will move the home faster and with the possibility of multiple bids. A neutral palette allows the buyer to see his taste.
Please contact me prior to renovating. I can view your home and prepare a thorough and comprehensive market analysis to help you decide whether you should renovate – either to enhance the enjoyment of your home or prepare it for our competitive marketplace.
ZONA HORTON, P.A., CRS, GRI Realtor®