Very seldom does a week go by when I don’t hear from a past client or a reader of this column asking if it would be wise to improve their home. My answer to this question is the same as many other real estate questions: “It depends on how long you plan to stay there.”
Would you go through the expense and hassle of refinancing to a lower interest rate if you didn’t plan to stay long enough to pay for it through the savings on your monthly payment? Again, the same goes for improving your home. Are you going to stay there long enough to enjoy it if a potential buyer is not willing to pay more for your home than other homes they are considering?
In my book, there are only two reasons for improving your home; either it needs to be done or you want it done. If you need a new roof, you need a new roof. If you need a new HVAC system, then you need a new HVAC system. But, if you want to update your kitchen with the latest amenities like one of your neighbors just did or what you have recently seen on HGTV, then you have to be ready to pay for it and the time to “pay” for it could ultimately be when you go to sell.
I am writing on this topic this month because of a newly listed home that I saw on Realtor’s tour last week that was absolutely beautiful and could be featured in Better Homes and Gardens magazine, but was grossly over-improved for its price point and neighborhood. Not only was it over-improved for the neighborhood, but it backed up to one of Naperville’s busiest roads and regardless of the extensive landscaping, the road location was going to be a selling deterrent for most buyers.
Yes, everything sells eventually, but at what price and after how much aggravation of hearing over and over, “the house is fabulous, but it backs to a major road.”
ADVICE: When it is time to make improvements to your home, don’t do it without considering cost vs. return of investment and certainly don’t watch too much HGTV and get carried away! Do it right, consult a Realtor® to determine whether your neighborhood warrants the improvements and to make sure that your plans won’t price you out of the market when it is time to sell. Once you have done your due diligence, get a permit, hire a local licensed contractor and stick to your budget. Then enjoy your newly enhanced home.
