Page 56 - Selling secrets 5 18 2023

However, if your home is worth $275,000 and you spend
$15,000 to revamp the kitchen, don’t assume the investment
will increase the value dollar for dollar. The remodel may
add value to the home, but the return in dollars spent will
be around 50%. Smaller upgrades, like replacing outdated
fixtures in the kitchen and bath, are certainly worthwhile,
but major remodeling of those rooms isn’t wise.

Don’t ignore repairs that a home inspector would red-flag
or a mortgage company would demand before issuing a
loan to a buyer. If you’re facing major problems like a
leaking roof or outdated electrical wiring, you must either
address those repairs yourself or be prepared to make major
concessions on pricing to the buyer so that they wont have
to bear the burden of major repairs as well as the price of the
home.

STARTING WITH THE BASICS

Keep in mind that the market value of your home is
determined by the prices of homes recently sold in your
area. Remodeling your kitchen to outshine others might not
get you more money for your home, especially if it exceeds
the market value buyers are willing to pay. You could spend
more money than you’d make in return. It’s possible to
“over-improve” a home beyond the value of an area by
putting so much money into improvements that it would be
impossible to recover it.

‘That said, every home offered for sale should meet basic
expectations—a sound roof, functioning gutters and
downspouts, a foundation without cracks, a functional
heating and air-conditioning system, solid sub-flooring, and
safe and secure electrical wiring. With financier-mandated

46