In terms of home renovations, there are three types: the basics, the best bang for the buck, and passion projects.
FREMONT, CA: Homeowners often upgrade their residences before listing them for sale by remodeling them. Renovations always boost the sale price. Companies should understand the typical return on investment for three types of remodeling projects: the basics, passion projects, and the best bang for the buck.
The Basics: There is a roof that does not leak, gutters that work, a dry basement, a reliable furnace, solid floors, walls that are in good repair, retaining walls that work, and working plumbing and HVAC systems. Home buyers, even first-time buyers, have a checklist that includes all of these amenities. In upscale properties, the basics may also comprise a definite number of bedrooms, bathrooms, and garages, as well as neighborhood features.
The tenants don't have to upgrade everything. Keeping everything in good working order with regular maintenance and smaller, cheaper improvements are necessary. The addition of basic amenities to a home that lacks them doesn't add value; it simply brings the property up to the level of the other homes in the neighborhood, making it more competitive.
The owners should consider what their neighborhood's competing properties have to offer before investing tons of money in an elaborate renovation project.
