[July 2019 | San Juan Silver Stage | By Ninah Hunter, Real Estate Editor]
WHETHER YOU just bought an older home or fixer or are thinking of selling your home in the near future, certain renovations may improve its value and marketability, others not so much. There are several factors you should consider before spending a lot of money on any home improvement.
Timing. If you plan to be in your home for several years, those improvements that add to the functionality of your home or meet your specific needs may make financial sense. They add intrinsic value, if not actual dollar-for-dollar value, by improving your use and enjoyment of the home while you live in it. On the other hand, if you plan to sell it in the next few months, you will definitely not recoup 100% of your investment. Nevertheless, as you will see below, some improvement projects will give you a higher return than others.
The Neighborhood. If your renovations make it inconsistent with the neighborhood, it may lessen its appeal to potential buyers. Examples are adding a 2nd story when all the other homes are single-story ranchers, or painting the exterior in bright, warm colors when all the other homes are subdued, neutral tones.
“If you have a home 30-50 years old, you will get a higher return on investment (ROI) for remodeling the bathrooms and kitchen.”
Age of Home. If you have a home 30-50 years old, you will get a higher return on investment (ROI) for remodeling the bathrooms and kitchen. If the home is less than a decade old, remodeling the bathrooms and kitchen are unlikely to add much to its value.