CHAPTER 5 Upgrade with ROI in Mind OI in Mind
Smart Enhancements for Your Home
When considering upgrades to your home, the mantra 'Return on Investment (ROI)' should be at the forefront of your decision-making process. Not all
improvements will yield a dollar-for- dollar increase in your home's value, and it's essential to discern which renovations will have the most significant impact when it's time to sell. Understanding ROI in Home Improvements ROI in real estate is typically less than 100%, advocating for a 'less is more' approach. It's often more beneficial to enjoy upgrades while you're living in the home rather than waiting until you sell. Not all desirable improvements will recoup their costs in the sale price, so prioritize those that you can appreciate over time. The Basics: Non-Negotiable Repairs Before any aesthetic upgrades, ensure your home satisfies the basic expectations: a solid roof, functional gutters, a crack-free foundation, reliable heating/cooling systems, sturdy subflooring, and safe electrical wiring. With finance-mandated inspections, addressing these issues may be necessary for buyer financing approval. Market Value vs. Extensive Remodeling Market value is influenced by comparable homes in your area. Extensive remodeling does not guarantee an equivalent increase 17
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