How the Cost of Upgrades Relates to Your Home’s Value

  Over time, many homeowners make changes to their home.  From light fixtures to flooring, landscaping, counters, cabinets, there’s a ton of interior and exterior home features that can be modified over time.

  So, how does the COST of any upgrades or improvements to your home relate to your home’s value?  It doesn’t.  The dollar amount you spend on any upgrades or home improvements has absolutely no relation to the value of your home.  There’s simply no correlation between cost and the realistic market value of your home at any given point in time.  The two are totally unrelated.

   Now, I’m not suggesting that improvements, enhancements, design changes and updating to your home doesn’t have an impact when it’s time for you to sell your home, but the actual cost of those changes, whatever the grand total you’ve spent on that work….irrelevant.

   For example, if you chose custom imported tile for your kitchen floor, a hand carved railing for the stairs, a top of the line kitchen appliance or any other change that carried a hefty price tag but you chose it because it was important to you….sure it’ll enhance and may improve how home buyers perceive your house.  But it’s not going to increase your home’s market value based on whatever that improvement cost you in a dollar amount.

   Simply put, home buyers aren’t going to care what any home improvements cost you when you chose them.  Buyers look at many many homes before choosing one to purchase.  Believe me, they’re not going to ask for a receipt and grand total for what you’ve spent on home improvements over the years.  They don’t care about the COST, home buyers evaluate based on what any given home has to offer, how it shows, whether it meets their needs and how it compares to other available home for sale.  Nowhere in that equation is any thought given to what you’ve paid for any home improvements.  It just doesn’t matter to home buyers. 

   Are home improvements, upgrades and enhancements then irrelevant?  No way!!! They can and do make a statement and impact how your home shows.  An updated and move-in ready house will stand out from others that may need some “tlc”.  But in reality any dollar amount you spent on home improvements just isn’t a factor in your home’s value.  Upgrades and features matter when it comes to selling your home, but the dollar amount you’ve paid for them just doesn’t.

   All that being said, buyers do notice a home’s features and a clearly well maintained house with some tastefully done updates/upgrades will have a much greater impact than a house full of half a** projects that look ready to fall apart.  Quality matters when it comes to home improvements…just don’t go overboard or to extremes on the cost when it comes to deciding on any projects and most of all, until the time comes for you to sell your home and move on…enjoy living in your home 🙂 

   If you’re planning on selling your home in the next 6-12 months it can be a good idea to get an objective opinion before diving into home improvement projects to prepare your house for the Charlotte NC real estate market.  Talk to a real estate broker, find one you have a good rapport with, who’ll provide a professional and fresh opinion of what to focus on.  Selling a home is a process that starts way before any buyer sets foot in the door, the planning and preparation stage of selling a home in Charlotte NC is critical. There’s a lot that goes on before a home’s ever ready to hit the real estate market!

Copyright©2009 by Diane McDermott, All Rights Reserved, “How the Cost of Upgrades Relates to Your Home’s Value”

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