where should you put your money??

since i'm knee-deep in the house-buying process, i've been watching hgtv on the weekends more. they have shows on sunday about realestate vs just decorating.

ok, so i was watching "my house is worth what?" where agents come to the house and "appriase" them. the people are looking to have a specific amount of equity to do things like remodel, sell, etc. some people get good news, some people are told that some upgrades don't necessarily bring an increase in value.

ok, so the show got me to thinking... where is it wise to put your money in a house if you're thinking you might sell down the line??

tia

Re: where should you put your money??

Obviously kitchen's and bathrooms are big.

But I also think that where you put your $$ is largely dependent on the area that you live in.

I also think you have to be conscious not to over do it for the neighborhood. Even if you have top of the line everything, if you live in a certain neighborhood, or you house is on the small side, there is only so much that you can get for it.

Re: where should you put your money??

I tend to think that kitchens and baths sell houses so if you are thinking about major renovations/updates you will probably get the most value out of kitchen and bath updates. I also think upgrades that save energy like new windows and doors, boilers etc also add value.

Re: where should you put your money??

on CNN/Money Magazine there is a top ways to get rich article and they say for home repairs/upgrades #1 is bathroom and #2 is kitchen.

Re: where should you put your money??

kitchens & Bathrooms, Hardwood floors.

Personally think that crown molding and wainscotting can add a lot for relatively little expense.

Finishing a basement/creating more living space.

Adding a bathroom if possible.

Making the outdoor space more livable - i.e. a nice patio area.

Those are the things i can think of....

Re: where should you put your money??

Re: where should you put your money??

Kitchen (I think, if you can, use granite. And incorporate a living area with your kitchen to make it an open entertaining/family living space.)

Bath (A jacuzzi tub, granite countertops, if you can. And make a master bed/bath suite.)

Re: where should you put your money??

Posted by lululu

kitchens & Bathrooms, Hardwood floors.

agreed

Re: where should you put your money??

bathroom & kitchen 100%. We intend to do over our kitchen in 2 years. It can add so much more to your value.

Re: where should you put your money??

Re: where should you put your money??

They say kitchen's have the highest rate of return on investment at about 85% (average.)

Re: where should you put your money??

Top 2 are:
Kitchen
Bathroom

Then:
windows (if they are very old and single pane)
Siding (if old)
Floors

Other:
Landscaping
Fence (mine if falling apart)

Re: where should you put your money??

I agree with kitchen and bath - but you probably won't get it all back if you sell soon.

What I have heard that you get back 100% is closets and decks - mainly, I think, because they are pretty small projects, but they have a huge effect on lifestyle

Re: where should you put your money??

Curb appeal pays back too if you don't go overboard. Well landscaped, nice entrance and driveway, etc. Doesn't have to be fancy with pavers and extensive plantings, just welcoming and cared for. I think it's a big plus in any home sale to be able to have it "move in" condition. If the buyers can picture themselves not having to do something immediately to make the house livable it's likely to sell faster.

Edited to add:

Here are a few links to sites that have articles on what your return is on various renovations in different parts of the country.

This one is a little bit old - 2005, but when I've looked at these type of articles over past years the trends have been fairly consistant.
cost vs resale value

LI Realty Improvements that Pay

Message edited 3/23/2007 7:56:16 PM.

Re: where should you put your money??

Kitchens, baths, finishing a basement, windows, siding, roofs (unfortunately the list goes on and on).

Re: where should you put your money??

Does anyone know about doors? Inside and/or outside? I would think those would add value as well.

Re: where should you put your money??

We've purchased a house that needed a total gut three years ago, and made quite a pretty penny after doing the renovations ourselves.

From my personal experience, kitchen is #1, bathrooms come second. Also, cheap, easy fixes, like, replace and modernize the outlets, the light switches and all the lighting fixtures. Molding adds a nice extra touch that draws the buyer's attention. So does hardwood floors.

Other major renovations - renovating a basement, if you can do it cheaply. We gutted ours for $8k, made it into a nice entertainment space, which helped us sell the house very quickly.

Edited to add - the ladies above are correct, especially in this market which has changed considerably in the last few years. The only way the renovations are profitable is if you either buy the house cheap enough, or, you save drastic money on the renovations by doing a lot of it yourselves. Otherwise, if you spend $40k on a kitchen, you could end up overpricing yourself.

Message edited 3/24/2007 10:02:13 AM.