Home improvement shows tell you that you can add 20 to 40 thousand dollars to the value of your Santa Cruz home by doing a simple remodel on virtually any room or outdoor space. While you can get a return on your investment for most remodeling projects, the increase to your home value is not always as high as the home improvement shows claim.
Myth #1: If you put 20 thousand dollars into a kitchen remodel, your home’s value will increase by 40 thousand dollars.
Fact: The average kitchen remodel costs 40 thousand dollars. This is on a mid-range remodel, not a high-end remodel. The average return you can expect is 80 to 95 percent or about 36 thousand dollars on a 40 thousand dollar remodel.
Myth #2: Updating a bathroom can add as much as 20 thousand dollars to your bottom line.
Fact: The average bathroom remodel will net about a 70 percent return. To gain the type of return some of the home improvement shows claim, you would need to add another bathroom to your Santa Cruz home.
Myth #3: Hardwood floors return 100 percent of the money you invest in them.
Fact: Hardwood will get you a big bang for your buck, but not every buyer wants the upkeep associated with hardwood. Children and pets can be tough on wood floors.
Myth #4: Adding an outdoor space will be counted as living space when you resell.
Fact: Although outdoor space is wonderful, it is not considered living space by appraisers. According to the American National Standards Institute (ANSI), the living space or square footage that counts in a home appraisal is the space above grade (ground) that is finished (has walls, floors, and ceilings), heated from the same source and all connected.
For help on what to do to improve the resale value of your Santa Cruz home, give me a call at 831.662.6522 or email me at Lauren@LaurenSpencer.com.
For additional information please visit my website at www.MySantaCruzRealEstate.com.