40 Ways to Enjoy Losing Money Before You Sell
Most people today who are thinking about buying are aware that inventory on Bainbridge Island is remarkably low. With so few homes for sale, many want-to-be buyers are likely asking themselves “Is it okay to just stay and live with what we have or should we invest now and improve our current home?”
Here’s some great insight to help answer these questions. The National Association of Realtors just released a new 2015 Remodeling Impact Report that dives deep into the reasons people remodel, the costs and returns on each project and uncovers the increased happiness that some of these projects bring to homeowners once they are completed.
The impressive new study – a first of its kind — also shares how REALTORS believe transactions are impacted by a remodel.
Low to no returns
Only one of the 40 projects in the study (24 interior, 16 exterior) was estimated to provide a homeowner with a greater return than their investment: a new roof with a 105% return on the investment. None of the other 39 projects had a return greater than the original investment. Put simply, your home’s sale just won’t recoup all the money you’ll spend on a remodel.
But that’s not the major motivation for remodeling: if you’re going to still live in your home for a few years before you choose to downsize, you should enjoy those last few years in your home. Most Bainbridge Islanders whom I know that have gone through a remodel shortly before they sell typically say the same thing: They wish they’d done it sooner so they could’ve enjoyed it themselves longer.
Whether for upgrading worn-out surfaces, improved livability or just because it’s time for a change, 74% of owners who remodel say they’ve increased their desire to be in their home. The report features a “Joy Score” for major remodeling projects and the ones with best scores had a typical rating of 9.4. It’s not surprising that inside the home, new bathrooms, kitchens, and master suites resulted in the highest Joy Scores (10, 9.8 and 9.7 respectively). Outside, new fiber-cement siding also received a Joy Score of 10.
What to consider
Most owners say they remodeled for the improved functionality (34%). When touring a property with a buyer, we discuss how their lifestyle matches up with the floor plan. Buyers have that “ah-ha” moment when they find the house that works for them because the livability is a perfect fit.
When consulting with an owner starting to think about selling, as we tour the house, I’ll be candid and point out how buyers tend to react negatively to outdated bathrooms and kitchens. Owners who invest in improving these rooms will attract more interested buyers when it goes on the market, and that will increase the likelihood of having a better offer submitted sooner.
Here’s the bottom line: If you are planning on selling your home in the next few years and want to enjoy it a little bit more than you presently do, this REALTOR encourages you to splurge a little and not worry about the potential for financial loss.
If you are unsure about what to do, call or text me on Bainbridge at 206-399-3641 and let’s walk through your home together.
If you are ready to improve, contact me and I’ll share some local contractor resources for remodeling, adding onto, or other major improvements to your home – inside and out – on Bainbridge Island.
It’s important to invest in your own happiness. You’ve earned it.
As your local Bainbridge Island Realtor® I’m here to help: [email protected] – or call or text me on Bainbridge at 206-399-3641.