For example, 2 drives (side and front circular), three exterior french doors, 2 exterior patio doors, 3 patios, pergo, hot tub, large office area, huge windows with skylights, and we are getting ready to upgrade the eat in kitchen, dining room and master bath and closet suite. How can we determine what we will gain on our selling price with these updates?
The other answers regarding the value of the upgrades--having to see and evaluate the property--really are correct.
The absolutely honest answer, though, is that many of those "upgrades" won't return anywhere near their investment. They may make it more pleasurable for you to live there. And they may result in a quicker sale when you do sell. But a lot of those won't return your investment. For example:
Two Drives: Are both necessary? I'm not aware of people paying any more for a second drive. And a second drive can eat up valuable lawn space.
Three Exterior French Doors: They look nice and may help your home sell faster. But unless they were replacing some really ugly, barely functional doors, it's not a great investment.
Large Office Area: If it's new space in the home, maybe. But if it's just finishing an unfinished basement, it'll add very little. And if you had to cannibalize a bedroom to create the office space: No.
Huge Windows With Skylights: Depends on where the windows are, and which direction they face. It adds almost nothing if they face north or west. And in today's energy-conscious environment, people worry about too many unnecessary windows.
Upgraded Kitchen: The kitchen is one of the two prime selling points in a house. The master bath is the other. If you're upgrading from a 1970s kitchen, it'll return a big chunk of value so long as you don't go overboard. But there are plenty of ways of upgrading a kitchen without spending a fortune.
Dining Room: Very little return. Most people already expect a decent dining room.
Master Bath: This is the other big selling area. But there are right and wrong ways to do it.
Again, really, you'd need someone to take a look. But from what little you've described, I'd expect a 30 cent to 50 cent return for every dollar you spend. Yes, it'll sell faster. But it won't be a terrific return on investment. Done right--done judiciously--you might be able to get back about 75 cents for every dollar you spend.
Hope that helps.
Start by looking at sold homes in your neighborhood in the last year. A realtor can help you do this. Establish a high and low range per square foot for what has sold in the neighborhood. Next, go and look at homes that are currently on the market, how they are priced and how they show compared to your home. The reality is when you look at homes currenlty for sale, some of them are overpriced and will not sell for their asking price. For most updates, you will not recover the cost of doing the update. Updates after a certain point will not support a higher price if you are already at the top of the range for what the neighborhood will support. View the update as something that you enjoy while you are living in the home. Now you should have enough data to know whether to forge ahead with more improvements or stop!
Be careful to not upgrade so much that you are the most expensive house in your neighbohood. You may want to be careful about your kitchen renovation, as well, because you will not get back the whole value of it when you sell. Most people renovate, personally enjoy the improvements, and sell down the road. The best thing to do is to meet with a Realtor to help assess the value of your home, discuss when you want to sell, and what things you should consider upgrading and what you might hold back on. She will look at the improvements, base that on a comparative market analysis, which will help you understand the market value of your home. A market analysis is based on houses sold in your area in the past six months.
give me a call at 6366876, I need to know the neighorhood before I could say what the price could be. Kitchen and bath upgrade will ofter bring more you weill not in most case recover all the money that you have invested unless you have lived in the home for several years. The area and the schools will make a difference in the price, some areas have remained flat others have gone up some have gone down. So again please call me and I should be able to five you CMA and if I could see the home that would be even better.
Thank for your great question
Jim at 6366876
You need to have an agent come out and do a CMA (Comparative Market Analysis) on your home. This will show comparable houses that have sold and are currently for sale in your area. It will give you an idea of what your home value may be.
If you are doing the upgrades and improvements for the purpose of selling, be careful. It is possible to over improve for the area and you may not get it back.
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