A Few Popular Expensive Home Remodels That Will Not Pay You Back When You Sell Your Home
Are looking to do a few nice upgrades on your home, but potentially plan to sell in the coming few years? If so, pay attention to how much and where you invest your $$. Don't get bitten by the magic phrase..."We'll for sure get it back when we sell."
Many studies come out each year in various publications about good and bad remodels, what percentage you might get back from dollars invested etc. These also vary depending on what part of the country you live in. Below are a list of several improvements ranked by Remodeling Magazine that come in dead last nationally when it comes to getting those renovation dollars back at resale. Most of these apply to Santa Barbara as well.
- Home Office Remodel - If you are looking for the average home office these days, just go to your local coffee shop or relaxed restaurant/cafe hang - out. More and more people are not liking the idea that a part of their home is referenced as a work space. Average stats show that sellers are getting less than 50% back upon resale from a home office investment. There are a lot of places in our homes that can be used at multipurpose spaces...but do not lock yourself into creating an office. The caveat is that if your home is big enough to have a legitimate office in addition to all the other great spaces. This is very common in Santa Barbara. Or if you simply are using a current bedroom as an office that can easily be made to look like a bedroom once again upon resale.
- Sun-room Addition - Here in the Santa Barbara area, sun-room does not go a long way. We live outdoors and fortunately deal with very little to no outdoor pests. Expect to reap less than 50% of your dollars spent on anything resembling a Sun-room.
- Upscale Master Suite Addition - In the last 10-15 years, the average homeowner loves the concept of an open floor plan as well as a master suite that resembles the stay at a nice 4 start hotel if not better. A remodeled master suite is a good answer...an Addition to add a master suite onto an original floor plan seems to once again recoup less than 50% of money invested. Original floor plans are often sited the best on a lot and additions tend to take away from this ideal spacing.
- Bathroom Addition - Same thing that applies to the master suite. Normally speaking original floor plans are the best and if they can be tweaked a little to instead do a solid remodel, sellers tend to get most of their invested $$ back. The key here is anything that seems to be an "addition" to the original house is not getting much more than 50% back on the dollar.
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For more information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in the Santa Barbara area, please don’t hesitate to contact Kevin Schmidtchen at Berkshire Hathaway.