One of the limitations of these estimates is the relationship between the type of house and the quality of the upgrade. A Viking range would be overkill in a $200,000 house but appropriate in a $1,000,000 house. You would probably recoup more of the investment in the latter case.

Also, an upgrade should benefit the current owner. We live in a time when a house is no longer considered a home but an investment. But really, one’s house is also one’s home. When we start looking at our houses as homes again, we will keep our houses in good shape and upgrade them as necessary because of our pride of ownership.

It just seems to me that at best you will only get back what you paid. I think Realtors pressure you to improve your house because they think it will make the house sell quicker, less work for them. (I think selling your house more quickly can be very valuable but it still doesn’t mean you’ll get back what you paid for improvements).

Thats being conservative. I would be more inclined to guess its closer to at least 50% on most things. I really get sick of the old cliche “Time is money” because its not true. Its a fallacy to think “Well I make $40 an hour so if I pay someone $20 an hour, I am saving money by my time.” That would only be true if the time you are paying someone to work is time you would otherwise be earning money.

That doesn’t include experience, the satisfaction of doing it yourself, and knowing it is done right (or at least what is right/wrong with it).

Regarding figuring out what the neighbor’s homes look like – open houses are good, as are online listings of houses for sale and the like. It also doesn’t hurt to make friends with your neighbors so you can scope out your place. Ultimately, though, you have to find a balance between living comfortably in the home while it’s yours and being able to recoup as much as you can when you sell. The level of upgrades (the mid-range kitchen vs. the high-end kitchen, etc.) matter, as do the style of the upgrades. You might love a kitchen with butcher block counters, but many people will see it as unhygienic and/or “woodsy”, etc. and view it as something they’d immediately have to change, which makes the house “worth” less in their eyes.

And regarding selling quickly – Tom is dead on. A simple coat of paint can make a *huge* difference. Other factors to consider: Will you be competing with newer properties, and if so, will you need to make updates to compete? Styles change in 8 years so while a house may be well-maintained, it might also appear dated. Are all your bookshelves and closets at least half empty? Buyers want to make sure there’s plenty of storage, especially in attached housing. If it looks like you have room to grow, they’ll think they will to. And when you’re removing things, don’t box them up and stick them in the garage – move them to a storage unit or a friend’s basement or something. Also thin out kitchen cabinets and drawers if you can, and anywhere else where you have “attached” storage (bathroom drawers, etc.) – it’s nosy, but people will go through them. Replacing the carpet and refinishing the floors are a good idea as well considering the age of the unit. And clean like you’ve never cleaned before – hire someone if necessary. Ultimately, though, the asking price will be the biggest help or hindrance to a quick sale. This is where a realtor or agent can be invaluable – they can looking at other sales in the area, other properties on the market, etc. and advise you on an appropriate listing price.

Assuming you do it correctly the first time.

Just how much of a percentage is saved by doing it yourself is going to vary from project to project, of course, but it’s probably at least 30% in most cases.

“Yes, the sale price would be affected by not remodeling as well over time. What we generally say, is that you will eventually pay for maintenance, whether it is for the maintenance itself or in a lower final price you get for a home you are selling. In your scenario, I believe that the numbers reflect a situation that the remodel will help you sell the home faster at a cost of only $500. And if you sell a home faster, it will generally sell for a better price.

Remodeling now and selling in ten years means that you will have had the pleasure of the amenity for 10 years, and after that time frame may have to consider updating again should you be preparing for a move.”

The site I linked to in the first place also has some things to say on the subject.

from pg 14:

Home owners rarely consider maintenance or the declining value of improvements. Painting, roof repairs or new furnaces don’t pay for themselves, and remodeling is a huge loser. Entire industries have arisen to entice homeowners to spend thousands of dollars for new kitchen cabinets, granite countertops and stainless steel appliances or his-and-hers master suite bathroom spas featuring multi-head showers and Asian inspired “soaking” tubs. Architects, builders, magazine editors and real-estate agents tout such improvements as if typical homeowners absolutely must take the remodeling plunge or forever risk the value of the house and suffer the ridicule of friends and neighbors.

Remodeling magazine publishes a widely quoted annual survey of the value of home improvements. In 2005, the magazine said that an upscale kitchen remodel like you see in the glossy shelter magazines would cost $82,000 and would return just 84% four years later. Absurd. This kind of project might get raves from your friends, but it’s a fool’s financial play. A new kitchen is certainly a nice thing to have, but it’s not an investment that’s going to make you any money. That 84% return means the homeowner will lose more than $3,000 a year on the kitchen. And if the owner borrows the money to remodel the kitchen – which most do – the losses could quickly triple.

@Bride, I honestly don’t know, but thanks for reminding us that other factors are involved. I’ll see if I can get an answer.

Nothing is in dire need of repair – home has been maintained well over the years. Air cond./furnace are less than 8 years old. Nothing needs to be repaired (not even a leaky faucet).

I’m thinking of replacing the outside fence (which is 20 years old), having the interior painted (which is 8 years old), having the upstairs carpet replaced (8 years old), downstairs wood floors refurnished. I don’t plan to go so far as putting in granite countertops or anything that extreme – frankly this place will sell quickly without it. But are these the best improvements to make for the buck? Thanks.

If that’s the case, if we sell our house after 10 years, without a remodeled bathroom, the price we paid was for a 26-year-old bathroom but we’d be selling a 36-year-old bathroom. Isn’t there a “penalty” inherent in extremely dated brass-and-glass shower doors, old fixtures, and those one-piece molded shell-shaped sink-counters? I think that’s where you get the “2 back for every 1″ math (particularly on bathrooms and kitchens, because plumbing and appliances degrade), because the sell price is affected by *not* remodeling as well.