Remodel & Renovate in 54022>Question Details

Courtneygrac…, Home Buyer in

If a house would sell for about $105K, would I get a return on investment if I spend $35K on a remodel?

Asked by Courtneygrace28@yahoo.com, Wed Jan 1, 2014

It's an 85-year-old house in good condition. 2 bedroom, 1 bath, 1000 sq ft. If I remodel the bathroom and put on new siding, would I see a higher sell price? Or is the fact that it's a small, 2 bedroom 1 bath house going to keep the market value low regardless? I'm concerned that if I put 35K into it, it would still only sell later for around $115K at most. In other words, is it worth putting money into small houses (if you don't plan to add bedrooms, baths)? I know every situation is different. But I thought that maybe there is general wisdom about this.

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Talk to a Realtor that specifically knows the area that you are referring to. It's quite possible that you are correct in that it won't bring the money that you've put into it, let alone your labor and holding costs. Other factors that play into this are your competition at the time you're re- listing the home, location and economic issues within the area.
1 vote Thank Flag Link Wed Jan 1, 2014
Where is the home located? If it is in the River Falls or Hudson area I can answer some questions for you. Just shoot me an email. Melissa.Wiegele@cbburnet.com or give me a call.
http://www.MelissaWiegele.com
0 votes Thank Flag Link Wed Jan 14, 2015
You need to look at comparable listings in the same community. To do this contact an active agent. Make sure you know what is selling and what is not in your area. Determine from this observation what you feel will make the difference.

I sold a small home that I owned and needed to sell quickly by patching the walls and giving the whole home a fresh coat of paint. The exterior could have used new siding but having it repainted was a major improvement. I also added new appliances including a fridge with an ice-maker and water in door and a glass top range. I may have gone overboard but I also added a new washer and dryer and a new evaporative cooler.

I believe the total I spent was about $15,000 and I was able to recover every bit of it and get the home sold. As far as making a lot of money by putting money into the home... that is the gamble. My purpose was to get the home sold and I was able to do that and make a little money in the process. I think had I had the time I could have put a new kitchen in but I am not sure the value would have been recovered at that point. The market where I had my home just wasn't that strong.

Good luck! Definitely compare the homes that are one the market, especially the ones that have sold in the last six months.
0 votes Thank Flag Link Wed Jan 1, 2014
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