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Owner of 1979 home, $57K in remodels - Realtor says the upgrades added no value to home?

Have turned a 1979 home into a new home.  Updates/Upgrades include but are not limited to the following: Gutted Kitchen and installed new maple cabinets with slide outs, new appliances and Slate Stone Floors including 2 pantry Cabinets; Travertine stone floors and shower in the Master Bath; Finished Basement with 4th bed&office&Bonus Room; 15x25 Covered Deck; New Heater/AC/Elec Filter/Humidifier; Crown Molding and Large Baseboards; New Elec Service Panel; New Vinyl Windows; New Roof; New Privacy Fence; New Garage Doors and Openers; New Paint Outside and Inside; and professional landscaping  = Even with all these updates and upgrades, my realtor says they do not add any additional value to the home except for additional $500 for windows and $500 for 2011 Roof.  According to everything I read and Watch on TV, and even on Zillow, I know should be able to recoup some of the improvements we have made to our home that we now must sell due to relocation in the military
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April 08 2011 - Briargate
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Profile picture for sunnyview
"Even if the added value isn't what you'd like, having it sell quicker due to the remodel could save you thousands."

Very true and so well said.
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May 09 2011
Profile picture for Dan P.
All good advice.  What matters now are the comps people are actually buying and what's for sale.  I would compare comps of your house before and after remodel to determine the added value.  Make sure the comps are in equivalent neighborhoods. 

Even if the added value isn't what you'd like, having it sell quicker due to the remodel could save you thousands.

Best of luck
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May 07 2011
Profile picture for sunnyview
Not really that surprising. It really depends on the house, the remodel and the price range of the neighborhood.

I have seen people put 50K kitchens in a 1350sf 3/2 starter house where the median price of houses was only about 150K. Those people never saw their investment back because they overbuilt for the neighborhood. When they went to sell, they priced their house at 178K and it sat until the price was dropped closer to the median. So remodels pay, but many do not pay dollar for dollar returns.
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May 04 2011
That is a little surprising, unless the remodel items were done poorly or the expenditures were on items that would have otherwise been considered deferred maintenance.
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May 04 2011
Profile picture for sunnyview
minotau is right. Not all remodels add value. Many things will be appreciated by buyers and make the house sell faster than an non-updated house, but whether the buyer will pay that much extra in the price for the upgrades is a different story.
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April 30 2011
Profile picture for minotau
I guess it depends on exactly what the agent said.  It's ridiculous to suggest that those improvements have not added value to your home, but if the agent was speaking in bottom line terms, if they were saying that you will not be able to sell for more that you paid even with the improvements then they may very well be correct, yes?

If I bought a property for $1 in 2006, made improvements that added 20-cents of value to the property and I go to sell today....well if values have declined 30% over the last 5-years in my area then I still won't be able to sell for $1 dollar.  I probably won't even be able to sell for 90-cents.
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April 20 2011
Profile picture for sunnyview
I agree. I would talk to someone else. You can also check the average return for your remodeling. Although they may help the house sell faster, most improvements do not add dollar for dollar value.

http://www.remodeling.hw.net/2010/costvsvalue/national.aspx
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April 20 2011

definitely talk to someone else. 

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April 09 2011
I like Alisa's answer, Most upgrades/updates will appeal to the buyer's eye. But it's what the appraiser will value that counts when you're trying to resale.
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April 09 2011
In Briargate you should be getting more of a return than that on value. A lot of what is stated above adds appeal to the home, but some of it should add value. Were you doing these upgrades over the last few years while the market was in decline, because that could explain a lesser return on what has been done. In some areas of Springs these upgrades might not bring much value, but in Briargate they should.
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April 09 2011
I would not say no value, but those improvements don't add dollar for dollar value.

What has sold in your neighborhood in the last three months?  That is top dollar.

Basement finish does add value, the updates and landscaping does add some more value and more importantly it adds curb appeal.

The electric panel, A/C, furnace, roof do not add value.  They are functional items, they either work - or they need to be repaired. 
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April 09 2011
Raymond,

Many of the improvements that you made to your home added functional value to you and your family while you lived in the home. Most, however, will not add actual value to the home when it is time to sell. The items that you have done to the home will make the home more attractive to potential buyers, and may translate into a quicker sale. You may be in a situation where you have over-improved for the neighborhood.

Perhaps it is the declining market prices that are making any suggested listing prices that you have been provided with by other Realtors seem unfavorable. This is a reality that many sellers are faced with in light of the recent housing crisis.
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April 08 2011
Unfortunately in today's market many times upgrades are needed just to get a buyer's attention and motivate them to make an offer.  Distressed properties are causing the values to drop dramatically and many buyers are only focusing on foreclosures.
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April 08 2011
Profile picture for wetdawgs
Talk to more than one agent.    It is sobering on the poor dollar return on remodeling, but sometimes remodeling is bringing the house in line with comps.   (TV is not a very good source for dollar values added by remodeling)
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April 08 2011
 
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