4 ms·

One slight different is that spending on your home will generally add value to it. It may not be necessary, and you may not get a dollar-for-dollar out of it, b

by prpl 4y ago

One slight different is that spending on your home will generally add value to it. It may not be necessary, and you may not get a dollar-for-dollar out of it, but it’s added value nonetheless. I cook a lot, I personally would like a higher quality stove - I’ve killed one before because I (an)use the broiler a lot (it wasn’t terribly old), but I probably would do an NXR or something. maybe in the $2k. Or a used Wolf/viking from one of the people you mention I’d rather buy a nice oven than a bunch of shit appliances though. People love their air fryers, over the stove microwave, countertop oven, instant pot, etc…

steveBK123 4y ago
I think most people delude themselves that their big renovations added any incremental value to their home. Usually the cost was financed and thus even higher than the sticker price, all-in. Further, the holding periods are measured in a decade +/- often, so the general market moves contribute more to the sales price than whatever you'd done to the kitchen/bath. On the margin, having a move-in ready home that's been renovated well enough recently enough, generically enough, ensures reasonable liquidity of being able to sell the home for a reasonable price reasonably quickly. For many this means replacing some dated appliances, repainting, and strategic spending on a few items that may be out of style or more aged, like bathroom vanity or replacing a linoleum top. Extravagant, expensive, specific renovations may actually detract because the general markets taste are not your taste and so you've either reduced the number of likely buyers, or half the universe of buyers are going to actually deduct value of your renovation because they may want to undo whatever you've done. Spending $2k replacing a worn appliance or buying a $200 air fryer are two orders of magnitude off from the expenditure levels I am referring to.
- neon_electro 4y ago
  >On the margin, having a move-in ready home that's been renovated well enough recently enough, generically enough, ensures reasonable liquidity of being able to sell the home for a reasonable price reasonably quickly. This is the motivation I have to invest further in what already feels like a generally "move-in ready" home; my "move-in ready" is not others' "move-in ready", so my goal is to find all the objections and invest in making them less objectionable :)
- dsfyu404ed 4y ago
  Renovations basically never add value unless you check more checkboxes or add on-paper features. Cramming a shower stall into a half bath, adding a dishwasher where there wasn't one, finishing an attic/basement, that kind of stuff.
blagie 4y ago
In my area, if I were to spend $50k renovating my home, the value would increase by approximately $0. If I were to spend $300k renovating my home, the value would increase by approximately $100k. The only real increase in home value comes from additions which add bedrooms. If I were to spend money converting an attic, a basement, or adding an add-on, I'd probably come out even at the sale. And renovations are quickly depreciating assets. I'm much better off doing that right before a sale. A new dishwasher will be an old dishwasher before too long.
- fbdab103 4y ago
  >I'm much better off doing that right before a sale. I would love to see industry averages on if pre-sale renovations make any sense at all. Considering the outright financial expenses, possible financing, potentially weeks/months of organizing contractors, dealing with overages, delaying the house sale, yada yada. If the work takes more than a week (so not just appliances, painting, etc) is there generally a positive expected return?
  - BirdieNZ 4y ago
    > I would love to see industry averages on if pre-sale renovations make any sense at all. Considering the outright financial expenses, possible financing, potentially weeks/months of organizing contractors, dealing with overages, delaying the house sale, yada yada. They must surely make sense, given that there are people who "flip" houses (buy a house, do a quick paint/bathrooms/kitchen renovation on it and sell it for a nice markup).
    - fbdab103 4y ago
      I was considering that, but flippers are likely better prepared to purchase a house, do the N activities which make time/financial sense, and get out of the market as quickly as possible. They likely possess the skills to do some of the work themselves, have existing relationships with plumbers/electricians to perform specialized work, know how to handle required permitting, have a realtor on the ready, and a dozen of other things which I am ignorant. The average homeowner is unlikely to have any of those relationships or knowledge, so there are a lot more things that could go wrong that delay the project or cause costs to balloon. Maybe a lot of people mistakenly believe that renovating the kitchen for $20k will add $40k value to the house, but in practice, the project will cost $34k, take five weeks, and ultimately only raises the final sale price to $35k.

by prpl 4y ago

steveBK123 4y ago

I think most people delude themselves that their big renovations added any incremental value to their home. Usually the cost was financed and thus even higher than the sticker price, all-in. Further, the holding periods are measured in a decade +/- often, so the general market moves contribute more to the sales price than whatever you'd done to the kitchen/bath. On the margin, having a move-in ready home that's been renovated well enough recently enough, generically enough, ensures reasonable liquidity of being able to sell the home for a reasonable price reasonably quickly. For many this means replacing some dated appliances, repainting, and strategic spending on a few items that may be out of style or more aged, like bathroom vanity or replacing a linoleum top. Extravagant, expensive, specific renovations may actually detract because the general markets taste are not your taste and so you've either reduced the number of likely buyers, or half the universe of buyers are going to actually deduct value of your renovation because they may want to undo whatever you've done. Spending $2k replacing a worn appliance or buying a $200 air fryer are two orders of magnitude off from the expenditure levels I am referring to.

neon_electro 4y ago
>On the margin, having a move-in ready home that's been renovated well enough recently enough, generically enough, ensures reasonable liquidity of being able to sell the home for a reasonable price reasonably quickly. This is the motivation I have to invest further in what already feels like a generally "move-in ready" home; my "move-in ready" is not others' "move-in ready", so my goal is to find all the objections and invest in making them less objectionable :)
dsfyu404ed 4y ago
Renovations basically never add value unless you check more checkboxes or add on-paper features. Cramming a shower stall into a half bath, adding a dishwasher where there wasn't one, finishing an attic/basement, that kind of stuff.

blagie 4y ago

In my area, if I were to spend $50k renovating my home, the value would increase by approximately $0. If I were to spend $300k renovating my home, the value would increase by approximately $100k. The only real increase in home value comes from additions which add bedrooms. If I were to spend money converting an attic, a basement, or adding an add-on, I'd probably come out even at the sale. And renovations are quickly depreciating assets. I'm much better off doing that right before a sale. A new dishwasher will be an old dishwasher before too long.

fbdab103 4y ago
>I'm much better off doing that right before a sale. I would love to see industry averages on if pre-sale renovations make any sense at all. Considering the outright financial expenses, possible financing, potentially weeks/months of organizing contractors, dealing with overages, delaying the house sale, yada yada. If the work takes more than a week (so not just appliances, painting, etc) is there generally a positive expected return?
- BirdieNZ 4y ago
  > I would love to see industry averages on if pre-sale renovations make any sense at all. Considering the outright financial expenses, possible financing, potentially weeks/months of organizing contractors, dealing with overages, delaying the house sale, yada yada. They must surely make sense, given that there are people who "flip" houses (buy a house, do a quick paint/bathrooms/kitchen renovation on it and sell it for a nice markup).
  - fbdab103 4y ago
    I was considering that, but flippers are likely better prepared to purchase a house, do the N activities which make time/financial sense, and get out of the market as quickly as possible. They likely possess the skills to do some of the work themselves, have existing relationships with plumbers/electricians to perform specialized work, know how to handle required permitting, have a realtor on the ready, and a dozen of other things which I am ignorant. The average homeowner is unlikely to have any of those relationships or knowledge, so there are a lot more things that could go wrong that delay the project or cause costs to balloon. Maybe a lot of people mistakenly believe that renovating the kitchen for $20k will add $40k value to the house, but in practice, the project will cost $34k, take five weeks, and ultimately only raises the final sale price to $35k.