A lot of people don’t quite understand that home repairs won’t necessarily improve their home’s value.
Upgrades, on the other hand, will do just that.
Understanding the difference between repairs and upgrades is extremely important when you’re doing work on your home. It directly influences the value of your property; the example below speaks to this.
I had a client who had a bad roof on a property, so they replaced it. Then they asked me how much the value on their home went up. They thought the home should have increased by $20,000 or more in value. But, the truth is this: All they did was repair a leaky roof—they didn’t necessarily improve the home’s value by upgrading it. A repair is something that maintains the home’s value instead of improving it.
An upgrade, on the other hand, would involve something like building a gazebo on a house or putting in brand-new hardware in an old kitchen. An accessory dwelling unit is another great upgrade that would increase your value, as would switching carpet to hardwood flooring.
When determining the value of your home, please keep in mind that not all repairs will increase your home’s value and not everything that you consider an upgrade will be one. If you have any questions or want any advice on how you should treat the upgrades and repairs in your home before you decide to sell, I’m always here to answer your questions. Don’t hesitate to give me a call or send me an email today. I would love to hear from you.