CHAPTER 6 Upgrade with Return of In eturn of Investment estment (ROI) in Mind
Making upgrades can be as easy as replacing the handset on your front door and freshening up the paint job, are as daunting as remodeling an entire kitchen or master bath. The question always is, what home improvements give the best return on the remodeling dollar?
Return on Investment (ROI) in real estate is typically less than 100%, which means that when it comes to home improvements, "less is more" is often the best approach. The key is to focus on upgrades that not only enhance your home but also increase its value when you sell. Common improvements that tend to yield a strong ROI include the kitchen, bathrooms, garage finishes, and landscaping. However, to maximize your investment, it’s always wise to consult a real estate professional, like myself, to ensure you’re making the right choices for the best return. If your home is worth $1,950,000, and you spend $50,000 to revamp the kitchen, the remodel may add value to the home, but the return in dollars spent will depend on many other factors. Smaller upgrades, like replacing outdated fixtures in the kitchen and bath, are certainly worthwhile, but major remodeling of those rooms will sell your home. That’s not to say you can ignore necessary repairs that a home 25
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