New World 2000 Realty Inc., Brokerage

Monday, February 4, 2013

One Mistake Homeowners Make

Woman stuffing cash into toy house 

It's important for homeowners to know the difference between how much they spent on a home improvement and how much value it will add to their house.  For example, if you spent $20,000 remodeling your kitchen, it doesn't mean the value of your house will increase by $20,000.  The longer you own your house after the improvements are done, the more likely you are to earn back all of your costs when you sell your house.  Also, remember that not all improvements are the same in regards to how much value they will bring to your home.

What the seller originally paid for the house and what the seller spent on renovations doesn't have that much influence on the value of the house.

1 comment:

  1. EXCELLENT point, Wendy! One of my biggest complaints about Home Improvement TV shows is the value they place on renovations. As a former appraiser, I can tell you for a fact ... not all monies are recovered in value for all improvements. People get a false sense of value from reading home improvement magazines or watching TV like "Love it or List it" ...