Where do they get these numbers?
I am a Food Network, HGTV, DIY Network freak. If I watch tv, these are the channels that are on. Usually with my lap-top on my lap. So here I am watching DIY network and wondering, where do they get these statistics. How do they calculate the before and after net of their feature remodel project.
A couple decides to remodel a bathroom and the real estate agent comes in before and after the project and tells the couple their remodel will net them 5% additional on the sales price of the house. On this particular episode the real estate agent quoted them a net gain of 300% over the cost of the remodel ($20,000 gain on $6500 spent). Don't get me wrong, I would love it if my sellers remodeled before they listed, but these shows leave folks expecting at least dollar for dollar return on their investment.
Aside from finding space i.e. attic or basement, and actually adding it to the total finished square feet of living space, owners should be careful when upgrading just to sell. Though they may have to upgrade outdated features just to get interested buyers, should anyone be telling them what they will net from their remodel?
Even our Realtor® Magazine , which publishes the Cost vs. Value issue each year, has stats saying what specific upgrades are likely to net the seller. I am going to commit a Realtor® sacralidge and ask the taboo question, how do they really know? Can they actually collect data from like houses, in like neighborhoods, with like yards, with only one having a remodeled bathroom. Can they then calculate the cost of the remodeled bathroom and come up with the difference the seller should expect to net? If so, how? Did house A sell for this much and house B sell for that much more?
For me the stats are meaningless unless I know how the data was gathered. If somebody knows where they get the data and how they calculate these figures, please share it with me. I would love have confidence in the numbers.
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Hm-m-m-m-m, sounds like fuzzy math to me... Have a great Easter Weekend...
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