You’ll Earn Back What You Spend on Renovations

Myth 6

As much as HGTV makes us think this is true, there’s no guarantee you’ll recuperate your money spent on renovations (depending on what they are). According to Remodeling magazine, the only renovation that is likely to net you as much as you spent is a new front door (say whaaaaaaat?!). Major kitchen/bathroom remodels will likely bring you back 67-70%. Unfortunately, updating less fun things like the HVAC, the water heater, or the roof, make more sense when you’re planning to sell. Though you won’t get your money back on those, you will likely sell your house faster. The home inspection will reveal if you have systems in your house that are malfunctioning and/or on their last legs, at which point you’ll likely need to credit money to the buyers or replace them yourself.

My advice? Do kitchen and bath remodels well before you plan to sell, so that you can enjoy them yourself. You never know what buyer is going to walk through the door – maybe they want to remodel the kitchen themselves; maybe they don’t like the counter tops you picked. Talk to your agent about what makes sense before you spend money; we can help you understand what comparable houses in your area are selling for and what updates they’ve undergone – there’s no reason to be the only house on the block with a brand new kitchen when everything else is selling as is.

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