Home Improvements for resale 2019 | Phoenix Arizona
Are you considering selling your home? Have you begun to think what home improvements you should do to the home to get the home sold for TOP dollar? Are you thinking that money spent on improvements prior to re-selling will help net more when you sell?
** All the information on this post was gathered via the National Association of Realtors, and the impact report for 2019.** Not really just my opinion, which it is, but also backed by studies too!!
Improving or making upgrades to Master Bedroom
Making improvements to the master bedroom a thought as you begin to think about selling your home? Maybe want to take the time to upgrade certain aspects of the master bedroom, that will make it that much more appealing.
Maybe the thought is to add features which not only help with the look and feel but maybe also with the livability quality. Maybe it is upgrading worn out surfaces, changing the finishes, and maybe even changing materials.
Truth is, for a home owner these changes can and do bring a great sense of joy. Most home owners prefer being at home more after such a project, but IS IT THE RIGHT THING TO DO FOR RESALE?
If you look at the above image, you will notice that there are some numbers provided. NARI ( national association of remodeling industry) provides and estimate of about $150,000 for upgrading while the realtor associations put it at about $75,000. The really key item is the next number which shows only a 50% return on investment after upgrading the master bedroom or suite.
Is it a good idea to upgrade the master bedroom?
Renovation of a bathroom
Second item on our topic today is whether a renovation of the bathroom is a good idea when considering reselling your home. In other words, should you do an upgrade to your bathroom to get more money at the time of sale?
As you can see in the image to the side, we again have some figures provided in the research study. Nari, indicates that one can spend up to about $35,000 doing upgrades to a bathroom. The realtors association averaged it out to about $20,000 for upgrading a bathroom.
Again, the big take away is the 37% return on investment. Per the study, doing a renovation to the bathroom will on average only net you possibly about a 37% percent return on your investment.
Should you do a bathroom remodel in order to sell your home? My thoughts again on this one, are a big no. The return on investment is not there when looking to resell.
Adding a bathroom
What about the idea of adding a new bathroom. Surely if one ad a new bathroom, which would also add to the homes square footage, and of course, add another bathroom will be a great thing to do prior to re-selling a home, right?
Nari – Again nari indicates that on average it could take about $60,000 to do a bathroom addition.
Realtors indicate about an average of about $30,000 to add a bathroom to the home.
For many homes the idea of adding another bathroom is huge. Having an additional bathroom can make the home MUCH more appealing to buyers. Especially families looking with multiple kids, that way there is enough bathrooms to go around. Nobody like the idea of waiting for a bathroom to free up in a time of need, much better to have multiple choices right?
Based on the study, on a 50% return on investment can be expected for adding an additional bathroom to a home.
Should you add an additional bathroom to a home prior to resale? My vote is going to be a no. Again, there is not enough return on the investment at this time to make it appealing.
Upgrading the kitchen
Should you consider doing kitchen upgrades prior to reselling a home? Well, I don’t know who would not want to upgrade their kitchen, especially if your like me and enjoy to cook. Is doing an upgrade to the kitchen prior to reselling worth it?
Nari – Nari indicates that on average american households can spend up to about $38,300 on doing upgrades the the kitchen.
Upgrades to the kitchen can be things such as putting in new appliances, maybe updating worn out surfaces and touching up the existing area.
Realtors indicate on average households can spend aobut $20,000 on doing a kitchen upgrade. Again, the key take away as in prior examples is the ROI – which in this case has upgrading the kitchen only providing on average a 52% return of the investment.
Should you upgrade kitchen prior to resell – My vote is a no!
Full kitchen Renovation
Should you look to make a full and complete kitchen renovation prior to placing your home on the market for sale?
Nari indicates that on average american households can spend aobut $68,000 on doing a complete kitchen renovation.
Realtors on the other hand come in at a lower figure of $40,000 for doing a full kitchen renovation.
Full kitchen renovation is likely to include new cabinets, drawers, counter tops and even potentially upgrading the appliances.
Return on investment comes in at 59%, which is still short of a dollar for dollar return on your investment. Would I recommend having you fully renovate your kitchen in order to resell? My answer, I do not recommend doing a full kitchen renovation prior to selling your home.
Upgrading your Closet
Should you be considering an upgrade to your closet or closets in order to place your home on the market for sale, in hopes of selling for a higher price?
Nari – The cost to upgrade the closet/s on average for american households is about $6300. You will notice this is a LOT cheaper than most items we have discussed to this point.
Realtors – Realtors in the nation indicate an average of about $2,500 to upgrades the closet/s for the average american household.
The key take away is that only 40% can be expected when you resell. So would you invest your $6300 only to get $2520 back?
My suggestion would be DO NOT upgrade your closet just to resell. You will not make the money back, and it does not make sense to do this upgrade in order to sell.
Upgrade your HVAC or air conditioning unit?
Does it make sense to upgrade your HVAC unit in order to resell your home? To be clear, this is to upgrade, not to maintain. We assume that the A/C unit is fully functional, and as such should a home owner look to upgrade when looking to sell the home?
NARI – The cost on average according to NARI is about $8,2000 for upgrading your a/c unit.
Realtors – On average realtors show that the cost to upgrade the a/c unit is about $7,000.
The return on investment is the highest so far, which comes in at 85%. Yet this is still short of a dollar for dollar return on money spent upgrading.
Should you upgrade your HVAC system in order to resell? My suggestion at this time is a big no, again, you just do not get the return on investment to make it worth the time or money.
As you can see there are many things that one can consider doing to upgrade their home. The questions posed in this article, is should some of these upgrades be considered in order to resell a home? Based on information found in the national association of realtors impact report for 2019, I would say that many upgrades are NOT worth doing in order to resell a home.
That being said, these are all WONDERFUL ideas to consider for enjoying the home while you live in it. These are all items that any home owner would get a lot of use, and enjoyment from and would be worth it in the long run. It just is not worth it solely for reselling.