Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

Real estate folly: Remodeling is a great investment before selling your home

See also

One of the more common misconceptions people have before listing their home is the need to remodel or do major updates to their property in order to bring a higher sale price.

Painting is fine and so is new carpet but experience has taught me the best money invested in a home prior to listing is complete inspections because then you really know what you are working with. There is nothing more disappointing to a seller than finding out there is thousands of dollars in termite repair to be done after really fixing their place up and an offer has been accepted.

There is nothing wrong with remodeling but do not let anyone tell you it is necessary to do before listing your home. Go right ahead and remodel if you want. You will be lucky to recoup your cost, much less make money.

That is not to say that you can't get back some of the money you spend on remodeling when you sell your home — if you choose your projects wisely. The return on your investment dollar will depend a lot on what you remodel, how much you spend on the job and where you live.

Many maintenance projects must be done to keep up the value of a home, but a great return on your money is not always guaranteed. Some projects recoup only about two-thirds of their cost when you sell the house, while others pay a better return.

Remodeling Magazine’s 2013 Cost vs Value report for the San Francisco Bay Area, including Alameda County, is a great resource for those thinking a new kitchen will pay for itself on resale. The higher quality of the remodel the less the return.

The top five best returns on investment for an upscale job in our area:

1. Garage door replacement gets you back 123.7% on your investment.
2. Window replacement gets you back 113.5% (wood) 110.2% (vinyl) on your investment.
3. Grand entrance (fiberglass?) gets you back 98.8% on your investment.
4. Bathroom remodel gets you back 95.8% of your investment.
5. Replacing siding with fiber-cement brings you back 95.2% on your money.

For a complete list check out Remodel Magazine’s 2013 Cost vs Value report for your metro area.

Want to know more about what to do before listing your home? Email me at americafoy@gmail.com.

If you have any other questions, or want to share your story, please reply to this post, contact me via my website, my facebook page, or on Twitter @AmericaFoy.

*Facts are from Remodeling Magazine, and the California Association Realtors® One Cool Thing

Advertisement

News

  •  One year later
    How victims have recovered a year after the Boston Marathon bombing
    Video
    Watch Video
  • Tax day freebies
    Everyone dreads tax day, but some businesses are offering deals today only
    Tax Day
  • Obamacare savings
    The rollout of Obamacare will cost $104 billion less than previously projected
    Top News
  • Blood Moon
    The first of four 'Blood Moons' came and went; is it the beginning of the end for mankind?
    Headlines
  • Arrest for threatening tweet
    A 14-year-old girl is arrested for issuing a threatening tweet towards American Airlines
    Strange News
  • Pistorius cross examination concludes
    Oscar Pistorius sheds more tears during the trial's final cross examination
    Video
    Watch Video

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!