Does your construction cost make sense?

I Got a call from a client today about his own personal home and what we could do to accelerate his equity position.

A lot of times most homeowners think that the cost is far too high to create any equity in their residence. For example what needs to be done to the home in order for it to be worth more might not make sense cost wise.

A lot of times adding a new bathroom or installing a brand-new kitchen with the right type of appliances and upgrades can be a huge difference in home pricing in a neighborhood.

Remember if you live in your house for a long time you may want to look at remodeling it to sell. If you’re moving it really makes sense to get someone into the home to help you analyze what it could be worth with rehab and what it is worth today. The numbers need to make sense.
In a lot of cases it makes a huge difference. For example updating a kitchen and painting the interior with up to date colors can give you a lot more interested buyers. That almost always means more money for your home.

You need to be careful and not over do it.  If you in a $150,000 home versus a $500,000 home updates are totally different and so will be your equity. The lower priced home will not make the money the higher cost home would in the long run.

Get a professional Realtor and contractor to get you all the sold properties in your are and what they had that you did not. Get the cost of the updating and boom you will know if doing the rehab makes sense.

If you do $20,000 in upgrades and it only gets you $25,000 more for your home, you may want to rethink it.  It that $20,000 gets you $35,000 more then that may be something that will add to your wallet. It is all about the bottom line.  Make sure you add in the closing cost associated with selling your property.

Every home is different and so are the neighborhoods.  Having a professional show you what can be done and what the potential profit benefit is, is priceless. Call Brett 216-703-5740 Century 21 Premiere and 602-363-6551 West USA Realty

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