Cincinnati Real Estate

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Kathy S. Koops GRI

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Real Estate Remodeling- Cost Versus Value Report

filed under: For Sellers posted on April 16th, 2012

While waiting for the real estate market to gain some momentum-many sellers are updating their homes in hopes of getting a higher sale price.

They call wanting to know which upgrade has the highest dollar value when selling- my answer is almost always- the better question to ask yourself might be- am I upgrading for my own enjoyment or to add resale value?  Perhaps the most important thing to remember when you’re thinking about upgrading or updating is to ask yourself “why”. If you are adding an ultra gourmet kitchen to a home in greater Cincinnati or West Chester and your current property is already more updated (read….owners have a;ready sunk a lot of money into remodeling and upgrades) the chance or recovering your investment in the short term is very questionable.

Since there’s no magic value wand to wave over the newly upgraded kitchen to determine value added- the second best thing is a Remodeling’s yearly report for various cities throughout the US.  (And thanks to Hanley Wood for compiling the data each year.)

The chart below is a snapshot of estimated cost versus the value for normal upgrades in the greater Cincinnati area:

As you can see recovering the total investment is not likely and I can tell you from personal experience the estimated prices for the job (ie: new front door) is usually lower than the actual costs.  Sometimes simple things like paint and carpet give your property a “newer look” and can have a huge impact on buyer perception when they view the property.

If you’re only updating for resale- call me and get a professional opinion before you spend your money.

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