I thought I would pass on some great information stated in Realtor Magazine, December issue. Everyone always asks us what would be the most beneficial return on upgrades in our home? Our answer to them is kitchen, bathrooms, and master bedroom. The only thing you really want to be aware of is the neighborhood you live in. If you live in a starter neighborhood or a neighborhood in the price range of 150,000-300,000 you want to be careful of the upgrades you choose. You can upgrade the heck out of your house and it might look beautiful but, if you spend too much you will not reclaim that money when selling your home. When living in a neighborhood starting at 500,000 you need to make sure you compete with the other homes in your area. For example, granite counter tops, five piece bathroom, and double ovens.
According to Realtor Magazine in Denver if you did a midrange up-grade on your kitchen and you spent around $20,764, the value at the sale of your home will be $15,398, a 74% return. If you did a midrange up-grade on your bathrooms and spent $50,597 , the value at sale of your home will be $33,752, with a 66.7% return. If you decide you want to add a deck or increase the size of your deck and you spend $10,923, at the sale of your home you will reclaim $8,758, a 80.2% return. These are just a few examples of ways to improve your home and increase it's value.
Bottom line when upgrading your home, know your neighborhood, talk to a professional real estate broker, and don't over due it.
*This information came form Realtor magazine. This is not a exact formula. Make sure you know the state you live in and the area you live in.
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