Should I Upgrade My Home?

Designing, remodeling, and upgrading your home is highly encouraged, however there are factors to consider before investing heavily into a project. 

First, let's debunk two myths: The amount of money you put in is not what you will get out. For example, you want to upgrade your master bathroom. The marble tile, custom spa shower, and jacuzzi tub project will cost you around $50,000 to complete. On average, nationally, you will be able to get around $29,000 back for the upgraded bathroom. This is according to the remodeling Cost vs. Value report of 2013. (www.costvalue.com)  The top three remodeling projects that will give you a high return are:

1. Deck addition

2. Entry door replacement

3. Garage door replacement

The next myth: My finished basement is going to make my home woth more. Sorry, I really wish this were true. I've seen some amazing man caves. However, an appraiser can only count living space that is above ground in their comparative market analysis. This is how they reach fair market value. The appraiser has clout in regards to whether the bank/mortgagee will lend your buyer money or not.  This is a hot button topic in many real estate offices today, including mine. The reason being that there are some really epic basements across Bucks County. Why should they not bring the home more market value than basements that are unfinished? 

Does that mean you shouldn't upgrade your home? No, you still should upgrade it. Realize that you are upgrading YOUR HOME! The ideal situation would be that you live in it for a while and enjoy the upgrades you made. Then put your home on market after you had your fun and think of the cost vs. value as your cost of enjoyment.

Lastly, the home appraiser for the lending institution doesn't care what flooring you have, but a potential buyer will notice your Brazillian Cherry Wood. An updated home is easier to market when you do want to sell. 

Please contact me to discuss anything real estate related:

Sid Shah

Coldwell Banker Hearthside REALTORS

114 South State Street, Newtown, PA 18940

s.shah@cbhearthside.com