There is nothing that can drain your wallet more then doing renovations on your home. If you have an estimate in your mind about how much it would cost to put in that new swimming pool, take that number and double it. The misconception about renovations is
sellers think that if you put $20,000 in renovations in your home, that it will add $20,000 in value. This could not be further from the truth. The reason is the renovations you put into the home may satisfy your needs, but may not appeal to the buyer. Putting in that new swimming pool may bring much enjoyment to your family, but the buyer may not even know how to swim! If you decide to do renovations on your home, make sure it is simply for your own personal enjoyment. Don't do renovations based on your motivation to sell. Because different
buyers and have different tastes, and you better believe those tastes will not reflect your own.
1 comment:
As a real estate pro in the greater Greenville, SC market area, I purchased a major fixer upper 3 years ago. You are on target with regards to renovations and expecting a great return. The cost of demolishing OLD construction is hardly ever recoup'd yet is about 40% of the work...so expect to do a lot of that yourself if you expect to make a return. I know and I have the bruises to show for it. I also have a vision and know my market area so as not to ever renovate or over personalize.
If planning to renovate, it's always good to keep the years in mind. In 1-3 years, I say fix it up with great marketable cosmetics and new systems as needed. In 3-6 years, work toward getting to the top 75% of pricing in your neighborhood by doing a lot on your own. Doing "projects" may be better suited for those who can't live with multiple projects going at all times.
For me personally, renovations are like, and ride along with, gardening. It's great for the soul! A last word...find good surplus suppliers in town and hire contractors for framing and 2+men type of work...my husband just doesn't like working on projects...he's a yard kind of guy!!! SOme of my cheapest hired contractors have come via paid contractors who do side work away from their hired trade. I found my plumber using an electrical contractor who moonlights doing lots of odd work.
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