Home Selling in 90025>Question Details

kdhall99, Home Owner in Los Angeles, CA

Will I get more money by adding upgrades?

Asked by kdhall99, Los Angeles, CA Sun Feb 24, 2013

Our home is 6 years old and we are looking to sell and move in 5 years. Is adding upgrades like hardwoods to our entire main floor and remodeling our master bath a good idea? Plus will we be able to get the money back we spend in upgrades?

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25
Kelly Miller’s answer
It depends. Some buyers want do buy an house as investment, some want to do it in their way. But, yes, a nice kitchen and bathroom may appeal to many buyers. It may add value and fetch you more money !
1 vote Thank Flag Link Sun Mar 3, 2013
Scroll down the "rehabbing" section of my broker's blog and you can read all about the ins and outs of renovations.
1 vote Thank Flag Link Wed Feb 27, 2013
Updated baths and kitchens definitely help to sell a home. Focus on the upgrades that are important to buyers in your area, spend your renovation dollars wisely and above all else don't go overboard. By doing so you will definitely get your money back, have an edge over your competition and if you focus on the right upgrades, you'll most likely see a return on the money spent. Good luck.
1 vote Thank Flag Link Wed Feb 27, 2013
The first thing is to have a budget so as not to get carried away with the renovation.Second you will need to get a professional opinion from a Realtor and a contractor .

Below is an article on how to come up with ideas for the perfect home renovation.

All the best.
1 vote Thank Flag Link Wed Feb 27, 2013
Dear Kdhall99,

It's possible you will, but it does depend upon what you put in and the area and demand. Kitchens and Bathrooms are #1 on the list for buyers. A gorgeous kitchen can make or break a sale, however, you might not get back everything you put in if you go overboard with the renovations.

My advice is to hire a local Realtor to advise you, before you start the remodel. Also, if you can get it done before Summer (our busy time) you will be ready for the buyers when they are out in mass.

Best of Luck to you! We expect this season to be extremely busy!
1 vote Thank Flag Link Tue Feb 26, 2013
It doesn't afect appraisals as much as its afect potential buyer desire to buy it. If you have highly updated/upgraded property it becomes very appealing to potential buyers there for you can expect offer or multiple offers and sometime it will drive property price higher.



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1 vote Thank Flag Link Sun Feb 24, 2013
All these various factors you mention have to be all taken into account of the equation to know the formula to meet the specifics. I can go over the possibilities with you? There are many various costs and grades of UPGRADES but generally yes. You can ultimately add a little more than cost in equity in this current market condition...

You may consider streamline 203k loan with 5k to 35k in repairs and standard 203k loan for 35k up to county FHA loan limits of $729,750. This types of loan projects requires a 203k project cost consultant whom verify's the estimates and goes over the costs with you depending on streamline or standard. It only takes a few dozen quesitons to go over your plan and qualify you in minutes. Here are some links to study and consider.

http://www.under640ficoscoreloans.com/Pages/203K.aspx

http://www.under640ficoscoreloans.com/Pages/203KGuidelines.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
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ALL Loan Programs Available
20+ Years Experience
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1 vote Thank Flag Link Sun Feb 24, 2013
I recommend you read the Cost VS Value report to see how your plans stack up. If you can't find it online, please feel free to email me at KassieAWelch@gmail.com and I'll send you a copy.

Another thing you may want to consider is what your plans are in five years. Will you be buying again? Interest rates could potentially be much higher which may impact value. If you plan on "moving up" the money in your pocket might better serve you. The decision has many facets to it, not just a simple yes or no, especially since no one can predict the future in five years. Having been a loan officer, underwriter and appraiser in the past, I look at the whole picture. If you'd like a consultation, please let me know.

Best of luck whatever you decide!
0 votes Thank Flag Link Sat Mar 29, 2014
Hi Will,

To answer your question: please read my top 3 improvements that homeowner need before selling your home. I have team of contractors who can price your improvements below market price.

Nick
0 votes Thank Flag Link Fri Mar 28, 2014
It all depends on what you are looking to upgrade. Kitchens generally yield the highest returns, but that is something you should consult a local agent about in your area. They would be able to tell you if that is what buyers in that area are most interested in or not. You don't always get 100% of your money back, but a lot of times it can be the difference of a quick sale which ultimately could net you more money than letting it sit longer on the market.
0 votes Thank Flag Link Wed Mar 19, 2014
Most buyers love hardwood floors ! If your house is only 6 years old you may not need to remodel your master bath but if you do you may want to do it closer to the time you sell as styles may change within the next 5 years . Good luck !
0 votes Thank Flag Link Thu May 30, 2013
Hello,

Buyers like upgraded kitchens and baths .

Hardwood floors are also a key selling point.

BE VERY careful thinking you will be able to recover the money you spend on the upgrades. Some home owners go way out and spend way too much on upgrades, thinking it will add extra value and they will recover the cost when they sale.

Truth is, your home will most likely sale for what the current market value in your neighborhood is. No matter how fancy your up grades are.

Upgrades will bring you more interested buyers, and perhaps a faster sale, but they generally to not make your home more valuable than the one right next door.

Best of luck to you!
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Apr 1, 2013
Remodeling is a good idea. Upgraded properties sell more and many buyers like to see new bathrooms. Keep in mind that you are not selling it now but 5 years later so what conditions would your renovations be in by then. Also styles and designs change quickly and you don't want any of your renovations to seem outdated by the time your ready to sell.
0 votes Thank Flag Link Sat Mar 30, 2013
Updating the Kitchen and Bath is a good option. You'll need to consider what shape/condition the hardwood floors will be in 5 year's from now? New window's and Central Air/Heating seem to be a selling point buyers are looking for as well......your home will be 11 years old when you are planning on selling, which is good. Most homes being sold are much older and require more extensive upgrades and maintenance (roofing, plumbing etc.)........good luck
0 votes Thank Flag Link Fri Mar 1, 2013
Depends on what the market looks like in your neighborhood. Careful not to go over and beyond what is comparable in your neighborhood. Upgrading a bath and Kitchen is always a good plan, keep it neutral as you're planning to sell and wouldn't want to have your improvement look dated by then. As far as the flooring, well that will depend on how worn out it is in 5 years, the new buyer may look at that improvement as an area that's needs replacement by then!
There's a shortage of inventory, why not take advantage and sell now?
Good luck!
0 votes Thank Flag Link Mon Feb 25, 2013
Upgraded properties tradionally sale more than homes in their orginal condition. Prospective buyers will state that they want updated properties as versus to properties in their orginal condition. Buyer will only have to be concerned with required monies for home purchase. If purchase home is updated buyer spared additional expenses of updates and or remodeling. Installing hardwood floors and remodeling master bath good resale upgrades. Common remodels are kitchens and bathrooms. Installation of hardwood floors and remodeling master bathroom should be a reasonable expense. Kitchens can be costly.

As a seller when remodeling consider remodeling costs and rate of return on investment. I cannot say what the housing values will be in the next five years. Consider what you paid for home six years ago and the value of property now. Improvements should have a rate of return in the next five years. As a homeowner this is your castle. You and your family live in the home and should personally enjoy and appreciate the good looks of your home. In other words, if you want these improvements for your home GO FOR IT!
Visit: Seller's Remodeling Ideas and Cost http://yourwestsidehomes.com/Remodeling_Westside_Home.html

Gail Mercedes Cole
EXP Realty
(310) 853-9933
0 votes Thank Flag Link Sun Feb 24, 2013
Much depends on the comparable values in your neighborhood. If you are already at the top of the home prices in the area, adding upgrades may not increase your home value much. Also, some upgrades add more value than others. remodeling the Kitchen and bathrooms are highest on the list. Also, it may not be a dollar for dollar return on your investment. This needs to be analyzed carefully by someone who understands the market and has a handle on construction costs.
0 votes Thank Flag Link Sun Feb 24, 2013
It will depend how the economy be in that time. So, far it looks positive about it, but It is not guarantee to get your money back. If your local real estate market continues to escalates then you probably get your money back or more. Otherwise, enjoy your upgrades.
0 votes Thank Flag Link Sun Feb 24, 2013
Hi,

Depends on the upgrades.

When can I come over and see what you have and offer some low cost easy improvements and upgrades?

Best

AL Goldberg Broker
800-765-3609
ALYoiurBroker@Yahoo.com
0 votes Thank Flag Link Sun Feb 24, 2013
Yes, always. The best upgrades to do to a property are kitchens and baths, this is where you are going to be rewarded for upgraded as most buyers love newer kitchens and baths, flooring also another good upgrade, hardwood floors are very desirable, you may not get much more for installing hardwood floors but your property will sell much faster just by the desirability of it.

Feel free to call me or email me and I would love to stop by and view your home and give you some pointers as to what is worth upgrading and changing.

I look forward to speaking with you soon.

Have a great day,
Heather Paul, Realtor, Broker Associate
Coldwell Banker
310-923-2334
http://www.HeatherPaulOnline.com
0 votes Thank Flag Link Sun Feb 24, 2013
Yes, but not all upgrades are created equal and one rarely gets back 100% of one's investment. If you email me at kassieawelch@gmail.com, I'd be happy to send you a report that gives you the ROI on improvements. It's a regional report, specific to Southern California and also differentiates the ROI based on the caliber of improvements (think high end, medium, etc.). I'm also ableto meet with you to do an evaluation of your home's worth and a plan for getting the most value out of it in five years. I look forward to hearing from you!
0 votes Thank Flag Link Sun Feb 24, 2013
I'd be happy to take a look at your house and advise you on what updates would be beneficial to your property. Contact me directly either at lenasrealtor@yahoo.com or direct ph# 310.625.9005
Lena Samigoullina
0 votes Thank Flag Link Sun Feb 24, 2013
maybe...but you will probably not get all of your dollars back n a sale. I've read studies that show you will only get a percentage of our outlay back. Kitchens and baths yielded the greatest return, but not 100%.

The best reason to upgrade is because it will add to the enjoyment of your home. Don't do it for return on investment...

Also, be careful not to 'over-improve' for your neighborhood.

Let me know if you have any other questions. Take care.
0 votes Thank Flag Link Sun Feb 24, 2013
yes, yes, and yes... provided that you will do them with good taste and workmanship.

Generally speaking you want to present the best face forward... in terms of return on investment for kitchens, bathroom and flooring they are proven winners... also consider you will enjoy better living while you are there.

Ron
0 votes Thank Flag Link Sun Feb 24, 2013
generally speaking, those are the kinds of things that will give you the most return on your money and add value. I would speak with a local experienced pro to get their take on how best to maximize value through improvements.
0 votes Thank Flag Link Sun Feb 24, 2013
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