Should I Invest in Expensive Upgrades to My Home?
The question often is asked “Should I invest in expensive upgrades to my home?” If you are doing it with hopes of getting a higher return on your investment, then you I think you might be surprised to hear me tell you that you should save your money. Investing in expensive upgrades to a home in the current market should always be regarded as the improvements are being done for your enjoyment, not for financial return.
If you will enjoy the upgrades, then do them. Especially if you are going to be staying in the home awhile. If not, and you are hoping to get a higher resale value from investing in expensive upgrades, I would caution you to be conservative about it.
For the past five years there has been a decline in market values in real estate, and a wave of foreclosures has aided in this reduction. Buyers are conscious of the ‘deals’ out there and are not as likely going to want to buy a home with all the upgrades in place, so you might be losing money if you are doing it for that purpose.
Some upgrades to add value, such as repairing the roof, or upgrading the furnace and water heater. A quality remodeling job in the kitchen can also add value in some cases, but despite the temptation to go over board, follow a practical plan.
Other modifications such as adding an additional garage or pole barn can make it more appealing, and in some cases command a higher price to the right buyers. Work with a local Realtor who knows the market area, and they can assist you in making those decisions sometimes.