TO IMPROVE OR NOT TO IMPROVE? THAT IS THE QUESTION!

Do you need to make improvements to your home before putting it on the market?   There are three basic rules about when to put the money into your home and when you will get it out. 

Rule 1:
If your house is in poor condition, improvements can increase the sales price.

Rule 2:
A thousand dollars spent to improve a home that is in good condition, rarely adds a thousand dollars to the sale price.

Rule 3:
The best way to add value to your home is by making improvements to the kitchen and bathrooms.

The following table sets out examples of cost vs. $ added to sales price.  $$ Added is the amount added to the sales price per every $1,000 spent on the project.

PROJECT
$$ ADDED
Minor kitchen remodeling
$990
Adding a bathroom
$900
Major kitchen remodeling
$850
Adding a family room
$830
Adding a deck
$700
Replacing windows
$680
Replacing siding
$680

In summary:

Don’t spend your money to improve a house that you plan to sell unless the house is in such poor condition that it can’t be sold without those improvements.