Budget Remodel for Best Resale Values
My husband and I are about to move into our first house. Our real estate agent ended up finding us a house in our budget that was way better than the other houses we had been looking at—it’s fabulous and exactly what we need. We will want to update a couple of rooms eventually in the home—the kitchen and master bath—so my husband has been doing some research. He found a great article today on MSN’s Real Estate section that talks about how to remodel to maximize the resell value of your home.
Some highlights:
• Remodel for future trends—not current ones. What may be popular today could be completely outdated in a few years when you’re ready to sell. The article advises sticking with neutral colors and materials.
• Go for durability. Always invest in high quality materials so they don’t show signs of wear when you resell.
• Spend wisely. Minor remodels actually give you a higher return on investment than total overhauls. The article states: “Someone who spent an average $14,913 refacing cabinets, replacing laminate countertops and installing new cooktop, oven and sink in 2005 would recoup an estimated 98.5% of the cost on average if the home sold within a year, whereas someone who spent $81,552 on an upscale, tear-everything-out-and-replace-it remodel would recoup 84.8% on average.”
• Bonus rooms are big. Retired baby boomers are going to want workshops and hobby rooms. The article also suggests that "Costco rooms" are becoming popular. People need a place to store all the 10-pound bags of pretzels and toilet paper they stock up on at discount warehouses. So true!
Check out the article. There are a ton of tips.