Get Ready For Higher Renovation Costs...
In this month's Deep Dive, we focused on home improvement, renovation, and repairs and how their costs affect home value. In particular, do they return more value than it costs to have these renovations completed?
Surprisingly, there are very few that return a positive return on investment. Granted, a house in disrepair will always have a lesser value, swapping out an outdated, yet functioning kitchen for a fancy new one in preparation for a sale, is generally not going to be a point of profit.
One of the core reports I analyzed for this article is the annual Cost vs Value Report my the acclaimed Remodeling Magazine. The 2018 Cost vs Value report just came out and we can see a drop in returns due to higher material costs and a loss of labor due to the natural disasters that hit the US (there is a trickle effect on labor).
This only reinforces the facts that renovations are not an easy source of increased profits. Repairs are and always will be. To game the renovation system and make it profitable, you have to get creative. If you would like to have a discussion about how specific renovations will affect the value of your house (whether you are listing for sale or not), I am happy to dive into your specific numbers for you at no cost.
Michael Robleto is a REALTOR® with Pasadena based Podley Properties. His analytical and open approach to sales has served his clients well in his twenty years of sales. Michael brings a modern data and technology-driven approach to real estate while focusing on the historic architecture of Bungalow Heaven. Tapping his experience in media and journalism, he publishes in-depth blog articles that will be of interest to homeowners and home-buyers. He can be found on Facebook, YouTube, Twitter and Instagram under the common profile name of his blog BungalowAgent or at www.BunaglowAgent.com/blog. For Sellers or Buyers Agent representation he can be contacted directly.