What will my return on investment be?

By
Home Builder with Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 CSL#642819
http://actvra.in/BKk

 

 

 So you want to add value to your home, great idea!

 

In my 25 years as a home improvement contractor, I have heard several reasons for improving a home. All of these made a lot of sense to the client, and they were willing to do the work. Adding more space, Preparing for sale, or updating the style of the home are all good reasons to improve your property.

 

deck boards in parking lot.If the only reason you are looking to do a home improvement is to add value, then you may have to take a closer look at the projects you are about to choose. Home Improvement projects generally have an average return on investment of 70%. So for ever $10,000 you invest in your property, you can expect about $7,000 in added value. But there are other things to consider.

Will it make your home sell quicker? Is the improvement something that needed to be done? Do you get to enjoy the improvement? These are things that add value in a different but important way.

Here are a few posts discussing, home improvement and value.

 

Market Report – Cost Effective Home Improvements in Sacramento 

Let's add some value

Check out this list of valuable home improvements before selling today

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Laura S. Baker 06/09/2012 04:16 AM
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Rainmaker
339,184
Laura S. Baker
First Weber Group - Lake Mills, WI
Realtor, (920) 728-4118, First Weber Group

Least we forget the all important, Are you over improving for the home or neighborhood?  In which case you will recoup little to no return on your investment.  Most xcellent post there Tom!  I hope you don't mind if I come back later to re-blog it?  :)

May 29, 2012 06:14 AM #1
Rainmaker
300,349
Peg Barcelo
Fluff My House! Home Staging Inc. 250.486.6369 - Summerland, BC
The FlufftasticStager from Summerland, BC

Tom, great points! I think people should always improve their home so they van enjoy it! But as a Stager, I know there are things homeowners can do to improve the sale ability of their home too!

May 29, 2012 06:23 AM #2
Rainmaker
863,319
Will Hamm
Hamm Homes - Centennial, CO
Where There's a Will, There's a WAY!

Hi Tom,  Yes the point is making the home sell faster.  I have to say if I have two homes with the same floor plan, the one that had some projects done will sell faster.

May 29, 2012 06:41 AM #3
Rainmaker
1,224,317
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage
You can reblog me anytime Laura. You bring up a good point, a lot money can be wasted in overimproving. Best to consult a Realtor!
May 29, 2012 07:03 AM #4
Rainmaker
1,224,317
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage
You have always said that you want to enjoy the improvements that are made. I think we can see that you are doing that Peg. Thanks for the comment here.
May 29, 2012 07:06 AM #5
Rainmaker
1,224,317
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage
Will, that is so true in tract homes. The homes are exactly the same, the things that were improve really stand out then.
May 29, 2012 07:07 AM #6
Ambassador
1,147,128
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Tom - Some improvements may be necessary to get a home to sell - an updated kitchen may push a home from blah to outstanding. But we think that enjoying the improvements is critical. When Mary and I built our home before this current one, we set a record for upgrades and extras - but we also sold the home for a neighborhood record high price, and got to enjoy everything for 5 years in the process.

 

May 29, 2012 08:13 AM #7
Rainmaker
1,224,317
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Now that sure makes a lot of sense Dick, why not use the cool stuff for a while?

May 29, 2012 07:37 PM #8
Rainmaker
1,593,694
Debbie Gartner
Floor Coverings International Westchester NY & Stamford CT - White Plains, NY
The Flooring Girl - Westchester hardwood flooring

Yes, that 70% # for major home improvements jives with what I've seen and read.  This is one of the many reasons it makes sense to do these types of renovations while you plan to spend more time in the house so you can enjoy them and improve the value rather than just do right before you sell.

It also seems like some of the smaller renovations (e.g. paint, add hardwood floors) have much better return than larger ones (like kitchen remodel, additions).

May 30, 2012 03:50 AM #9
Rainmaker
1,224,317
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

You are right Debbie, the smaller renovations can really make a good return on investment.

May 30, 2012 11:31 PM #10
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Rainmaker
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Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366

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