In last weeks’ blog episode, which was given a high valuation, (by us), we discussed the home remodeling projects that provide the best ROI. What emerged as paying off the most for the least invested? Fixing up your garage door, providing a 151% return. That beats raising the roof—redoing the den and fixing up the attic.
This week, Pahroo Real Estate Appraisal & Consultancy, presents comments and notable quotes from those who’ve fixed up their home and were either happy or (how shall we put this?) miserable and totally ticked off at the results. Here we go:
Home Improvement for the Love of It? (Hello from Jane D.)
“I'm one of a handful of people who do projects because I like my home rather than wanting to increase to increase its value. Function is much more important to me than decor. I want it to meet my comfort standards rather than follow a realtor's or appraiser’s advice.”
We won’t take personal affront at your remarks about appraisers, but there’s nothing lost and everything to be gained with remodeling for both reasons—because you love your home and because you love making money.
This Entire Article in a Bottle (Courtesy of Mark L.)
“The one thing that ALWAYS gets left off of these ROI (return-on-investment) articles is that whenever you expand your home's footprint, especially if you make the home substantially larger than the neighboring homes, is that in doing so, your home's appraised price per square foot decreases. If you have a $200,000 2000 sq ft home in a neighborhood of 1500 sq ft homes that are worth $180,000 on average, your home is worth less per sq ft then the others ($200,000/2000=$100 per sq ft; $180,000/1500=$120 per sq ft) And if it cost more than $20,000 to add the 500 sq ft, then you actually lost money in the process. One of the best things you can do is to get to know your neighborhood, then when you add on or upgrade, only boost your value by 5-10% of the neighborhood average. Otherwise, you risk being the guy that took the hit so that the neighbors could upgrade to your level.”
When it comes to the ROI involved in a remodel, need we say more? Need you? You’ve summarized this entire article brilliantly and the reason to crunch numbers. P.S. Was there a single malt scotch in that empty bottle?
FLUSHED WITH PRIDE (From Sue. B)
“ We're right in the middle of a bathroom remodel that has gone over budget and time and this tiny bathroom is going to be the nicest room in the house. I've thought about having a "bathroom warming party" when we're done. :) I'm happy with the way it looks so far and it was needed due to termite damage. (That was not disclosed by the seller.) But I'm still sitting here wondering if we'll recoup the cost when we sell the house because every time we try to "improve" something in our home we find shortcuts the previous owner made and has made our home "the money pit".
Looks like you’re into “Game of Thrones” with your bathroom redo. Congrats on that—and the party in the John seems like an awesome idea. Everyone can bring a vintage bottle of Scrubbing Bubbles. Hope you remain flushed with pride over other improvement projects. As you note, it’s not always easy to do.
GRIPES OF WRATH OVER HIGH REMODELER PRICES (From Bill H.)
“With the outrageous prices contractors want to charge you, no project or fix up is worthwhile. We tried to have our bathroom renovated, just tile replacement and a non load bearing wall knocked down, and they wanted 20 grand! And the materials were on us! We changed our mind... We knew it would never give us a good return on the money spent.”
Sorry to whine, but you clearly didn’t read our last article. There are quite a few home improvement that go through the roof for investment return. Check out “Your Best Remodeling ROIs” from the Pahroo Appraisal October article series.
Blurb at End
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