All things being equal, in the broadest sense the answer is â€œYESâ€. However as it applies to any specific home, all things are not equal and you may have to ask yourself more questions.
The first question is â€œWhat upgrades?â€ Some add more value than others.
â€œMore than what? â€œIs also a key question. More than Market Value? Probably not.
Another question is â€œHow would the upgrades compare to the comps?â€. If most of the homes in the neighborhood have been â€œupgradedâ€ then weâ€™re not really talking about an upgrade, itâ€™s more of a â€œcatch up-gradeâ€. In this situation, you can expect a home without the improvements to sell for less. Understanding how much less would help you determine whether it is worth the expense.
A word of caution, make sure that you understand what drives value in your neighborhood. Often home owners will do improvements hoping for a sale price equal to homes in a nearby, more expensive neighborhood. (â€œI can make my house just as nice as the homes in the tract across the street that sell for a lot moreâ€¦). The problem is that much of the price difference could be based on the fact that people are willing to pay more to live across the street. Since an upgrade will most likely not include moving the house across the street, you shouldnâ€™t expect the same value.... more