"Roger bought an old house, made a few improvements, sold his own home and doubled his money in six months!"
Ignore Roger and consider the following fsbo rules before adding a deck to the home you plan to sell:
If the house is in poor condition, improvements can increase the sales price.
A thousand dollars spent to improve a home that is in good condition, seldom adds a thousand dollars to its sales price.
Nothing adds value to a home like improvements to kitchens and bathrooms.
Cost vs. Improvement in Sales Price:
The table below, from a recent magazine survey, confirms our own observations. Typical home improvement projects are listed on the left. On the right, is the dollar amount added to a home's selling price for every $1000 spent on the project.
$ added to price
Minor kitchen remodeling
Adding a Bathroom
Major Kitchen remodeling
Adding a Family room
Adding a Deck
Reading the table:
On average, a person who spent $1,000 to add a bathroom, saw a $900 increase in the price of his home.
The family who spent $1000 to add a deck, saw a $700 increase in the sales price of their home.
Don't spend money to improve a house you plan to sell unless the house is in such poor condition that it cannot be sold without improvements. For example: the house needs a new roof to keep out the rain; or a modern bath with a shower.
Improvements might make sense if you can do the work yourself. If you can add kitchen cabinets for $500 rather than $1,000, you can still expect the $990 increase in the value of the home. On the other hand, shoddy work on those kitchen cabinets can reduce the value of your home.
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