What type of upgrade will produce the best return?

My seller has $2500 that he is willing to use to upgrade his home before he sells. What would you suggest that he do with the money to ensure the best return and the highest price for his home? 
  • August 15 2011 - Roseville
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Answers (10)

Best Answer

Profile picture for SoCal Engr
Out-of-the-box thought...

Depending on the condition and price of the house...keep the money and simply drop the price. If the price is low enough, maybe a $2,500 drop will help drive traffic.

If the price isn't low enough for $2.5K to make any real difference, then you're looking at condition. As with the others, I can't see $2.5K doing much to increase the price, just the marketability.
  • August 15 2011
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Profile picture for blue screen exile
Is there an "echo" in here?
  • August 17 2011
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One more idea:
I don't know your price point or the general condition and appearance of the home, but that $2500 might give you great bang for the buck if it were applied to staging and "prettying up" the front garden. As you know, curb appeal and a pretty interior layout can make a huge difference to the experience of your prospective buyers!
  • August 17 2011
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Remodeling Magazine's 2010-2011 Cost vs. Value report claims that the top 5 investments (for best return on investment) are: 1) front door replacement 2) garage door replacement 3) siding replacement 4) minor kitchen remodel 5) deck addition I wrote a blog on this topic (and why these improvements add so much value in buyers' eyes) Check it out if you're interested... http://fineeastbayhomes.com/curb-appeal-selling-your-home-in-the-first-30-seconds/
  • August 17 2011
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Wow! This is a lot of great feedback. I particularly like the answer from SoCal_Engr to just consider keeping the money and reducing the price. Thank you!
  • August 16 2011
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Kitchens and bathrooms always bring up the value when improved. Whether you upgrade the vanity or replace the flooring it's usually a win win.

  • August 16 2011
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I concur with the answers below. Use this money to improve the marketability of the home focusing on the curb appeal of the home first and then looking inside as to what you could do with this amount of money. Could a room or two need new paint? Is there worn carpeting?
Sometimes changing the faucets in kitchen and bathrooms is a good touch if they are older. Sometimes the little things go a long way. Good Luck!
  • August 16 2011
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That moneyis not enough to make a marked price improvement. I suggest to use that money to make the home more marketable such as improve curb appeal and freshing up the interior of the home. Paint where needed, deep cleaning and small repairs to make the home look " Move In Ready "
  • August 15 2011
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Profile picture for blue screen exile
I'm with Greg on that; you don't get your money back out of "improvements"...

It is all about "curb appeal" and fixing issues that would have to be fixed anyway, or that would prevent a sale.

$2500 is not even enough for any "improvements".

But things I would spend it on?
1) caulking where needed
2) touch up paint, especially trim, and any sun beaten areas
3) replacement faucets, especially if any calcium build up.
4) cleaning the kitchen floor.
5) "magic erasers" to clean smudges off of walls
6) Door knobs, cabinet knobs, drawer pulls, if needed.
7) Kitchen Drawer slides, if needed
8) front landscaping, especially colorful flowers.
9) Removing paint from windows.
10) Making sure all windows are operable.
11) Cleaning all dirt off of the foundation, both inside and out.
12) accent lighting under kitchen counters.
13) Porch carpet
14) Replacement of any painted receptacles and device plates.
15) GFI outlets where missing and required in kitchen, bathroom and exterior.
  • August 15 2011
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Is there any upgrade that will, on day one, even equal the up-front investment?

Generally speaking I say no, there isn't one.

I think it comes down to the marketability of the home, and each home will have a different answer, if there is any answer at all. If a home is comparable to the homes in the neighborhood but has a really run down kitchen or something like that, it might make sense to put that money into the kitchen because it will drastically improve it's marketability (a kitchen is also one of the best upgrades ROI-wise), more than it would improve the potential sales price if it was an average kitchen and it was remodeled.

Marketability is what it's all about. It's your listing, you know the house, do you think there is anything that the house really NEEDS to improve the marketability? If not I can't think of much he can do with that money that will give him a good return when the home sells (other than staging and some minor cosmetic upgrades that will increase curb appeal).

That's my take on it anyways.

Sincerely,
Greg

  • August 15 2011
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