With the current state of the housing industry, many potential home sellers are wondering what to do to make their houses more likely to sell. Should you take on major housing improvements, like installing new siding or finishing your basement? Or should you settle for more minor improvements?
According to the Statesman, the smaller improvements are better:
Even a minor, mid-range kitchen remodeling project in the D.C. area would cost about $21,000, and a major “upscale” kitchen upgrade would cost $110,521, according to Remodeling magazine’s 2007 Cost vs. Value report. That report seeks to estimate the costs of common remodeling projects and how much of the investment will be recouped at resale.
“To sink those kinds of dollars into a property that you are planning on leaving is very risky,” said John Wuestman, a broker and an owner of suburban ReMax Advantage Realty. “Any thought of recapturing 100 percent of that isn’t true. … It’s more like 70 to 75 percent.”
Payoff for recent remodeling projects at resale varies depending on the project, Remodeling found. That mid-range kitchen upgrade, for instance, would add about $17,000 to the home’s resale price, recouping about 82 percent of its cost. The upscale version would add about $85,000 to the bottom line, for a 77 percent payoff on investment.
Find out more about Home Improvement at Remodel Tree