The Truth About Renovations and Market Value

You’ve poured your heart, soul, and possibly thousands of dollars into updates on your house. When the time comes to sell, you’ll get all that money back, right?

As much as I’d love to tell you that you will, the truth is that while updates can increase the value of your house, it’s not a dollar for dollar increase. Some updates may not add any value at all, especially if they are things that are very specific to your style, taste, or lifestyle. At the same time, if your home is at least 20 years old and hasn’t had any updates, that could lead to your home selling for less.

Before investing in updates, consider which will add value and which may not. If the updates you want to do won’t add value, you may still choose to do them for your own enjoyment! Just be aware of the impact when you sell your house in the future.

Updates That May Add Value

1. Paint – The number one thing that you can do to increase the value of your home is to freshly paint the entire house in a neutral color. Alabaster, Agreeable Grey, and Paperwhite are all great options for increasing the appeal of your house before it goes on the market.
2. Kitchen and Bathroom Updates – While you don’ t have to do a complete renovation, things like new appliances, painted cabinets, and new counters in your kitchen will make a big difference when you sell your house. For bathrooms, replacing vanities, hardware, light fixtures, and mirros is a quick and relatively inexpensive way to update the bathroom without breaking the bank.3
3. Floors – Replacing carpet with hard surface floors is also a great way to update your house. Waterproof laminate and luxury vinyl plank are great options, as they can often be installed quickly and inexpensively.

Updates That Probably Won’t Add Much Value

1. Pools – One of the biggest misconceptions about swimming pools is that they add significant value to your house. The truth is that they may add some value, but nowhere near the cost of a pool, which is about $40,000 or more. If you want a pool, put in a pool. But keep in mind that the pool likely won’t result in a higher sales price.
2. Solar Panels – If you’re concerned about carbon footprint or saving on utility bills, you may be considering solar panels. Before spending the $20,000 plus for solar panels, remember that if you finance them, you will need to pay off the loan at closing. Yes, solar companies do usually allow a buyer to assume your financing, it’s a rare thing to find a buyer who is willing to do that.

If you’re considering making updates to your house before selling, the most important thing to consider is the cost versus what you’ll get back at closing. Often ensuring your house is clean, free of clutter, and in good repair is a better use of your money than making costly updates.

Still not sure what or whether to do updates? Email me, and I’ll help in whatever way I can.