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FAQ - What will my return on investment be?

Reblogger Laura S. Baker

Real Estate Agent with First Weber Inc WI LIC #125698

May 28, 2012 10:44 PM

The Real Estate Market has been just a boomin' in South Central WI!

However; I had come across this post written by my friend Tom Arstingstall, General Contractor and so much more, from Sacramento CA and just had to stop by to share it! If you haven't met Tom yet, stop on by his blog! If you really want to have some fun, hit that little ol' "Subscribe" button. Tom is knowledgeable, talented and has a great sense of humor!

He makes a great point here, the only thing I might add is to take great care not to over improve your home. It's fine if you intend to stay there for a very long time, but if you plan on moving in the next few years take into consideration the home itself as well as the neighborhood you live in.

If you are doing improvements in South Central WI, consult with a Realtor & Home Stager. They will be able to help you put your money where you will get the best return on investment and make your property market ready and emotionally connect with your target buyer!

So you want to add value to your home, great idea!

In my 25 years as a home improvement contractor, I have heard several reasons for improving a home. All of these made a lot of sense to the client, and they were willing to do the work. Adding more space, Preparing for sale, or updating the style of the home are all good reasons to improve your property.

If the only reason you are looking to do a home improvement is to add value, then you may have to take a closer look at the projects you are about to choose. Home Improvement projects generally have an average return on investment of 70%. So for ever $10,000 you invest in your property, you can expect about $7,000 in added value. But there are other things to consider.

Will it make your home sell quicker? Is the improvement something that needed to be done? Do you get to enjoy the improvement? These are things that add value in a different but important way.

Here are a few posts discussing, home improvement and value.

Market Report – Cost Effective Home Improvements in Sacramento

Let's add some value

Check out this list of valuable home improvements before selling today

I’m looking for a few brave souls.

Related Posts:

FAQ - Are you a licensed General Contractor?

FAQ - Do you have Liability and Workers' Compensation Insurance?

FAQ – Do I need to get a building permit to do this?

FAQ - What will my return on investment be?

FAQ – When would you be able to start?

FAQ – Do you give free estimates?

FAQ – Can you give me a “ballpark” estimate of the cost to repair?

FAQ – Is it too late to do a change order in my home improvement?

FAQ - I've repaired it already, why is this water damage recurring?

FAQ – I don’t know what to do, what would a contractor suggest?

Specialists in Dry Rot and Water Damage Repairs

Tom Arstingstall
Tromler Construction
General Contractor
Specializing in Dry Rot and Water Damage Repairs

916-765-5366
Water Damage Repair in Sacramento Dry Rot Repair Contractor in Sacramento

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JOSH EVANS *JoshEvansHomes 516-655-5000

Village Properties of Mineola, LLC - Mineola, NY

Great job and great blog. Keep up the good work and good luck to you this year. Thanks.

Jun 08, 2012 09:16 PM

Laura S. Baker

First Weber Inc - Lake Mills, WI

Realtor (920) 728-4118, First Weber Inc

Hey Josh, thank you! Hope you are having a most amazing year as well!

Jun 08, 2012 09:23 PM

Conrad Allen

Re/Max Professional Associates - Webster, MA

Webster, Ma, Realtor

Hi Laura. Improvements and maintenance are two different issues. Spending $10,000 on a roof replacement does not add $7,000 value.

Jun 08, 2012 09:42 PM

Thanks my Zinger Friend! But you and I know the only place folks should look for help in that is by calling us! LOL!

Great Point Conrad! And I would have to say, the first place to put any money is into maintenance! There is great value in a well maintained home.

Jun 08, 2012 09:51 PM

Richard Burge Realty/ Burge Homes

Richard Burge Realty/Burge Homes - Conway, SC

Broker in Charge/Owner

In our market condition is everything to get your price.

Return on an investment in not guaranteed in selling your home.

Good post..

Jun 08, 2012 09:53 PM

Edward Gilmartin

CRE - Boston, MA

You have to look at the neighborhood you live in before completing your decision to make an improvement. Sometimes it is better to sell your home and buy another that already has the improvement you were thinking of making. Other times you will be wise to improve your home if other homes near you are much more expensive.

Jun 08, 2012 10:00 PM

Bob Miller

Keller Williams Cornerstone Realty - Ocala, FL

The Ocala Dream Team

Hi Laura, thanks for making Tom's blog come to my attention. And you are right about not over-improving.

Jun 08, 2012 10:36 PM

Gary Woltal

Keller Williams Realty - Flower Mound, TX

Assoc. Broker Realtor SFR Dallas Ft. Worth

Great re-blog of Tom's there Laura looking at ROI with home improvement. Some new pool installations you only recover about 30% on sale of the house. You don't want to be the most expensive house in the neighborhood either.

Jun 08, 2012 11:05 PM

Kristin Johnston - REALTOR®

RE/MAX Platinum - Waukesha, WI

Giving Back With Each Home Sold!

Hi Laura..haven't seen you in the rain much.....great REBLOG..I love these types of articles...really make cents LOL!

Jun 08, 2012 11:42 PM

Anna Dovger

Add Value Home Staging LLC, 281-704-6607 - The Woodlands, TX

Home Staging -The Woodlands, TX

Hi Laura, great re-blog. 70% RIO is pretty good number. It is always great to make the improvements and have time to enjoy them so those 30% would not hurt that much.

Jun 09, 2012 02:28 AM

Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366

Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA

General Contractor, Dry Rot and Water Damage

Wow!

Thanks for the kind words and invitation to subscribe. I think I'm more impressed with the intro than the post itself Laura. :)

I appreciate the reblog, "return on investment" always a good topic of discussion.

Jun 09, 2012 12:28 PM

Richard, in our market condition is everything in getting a home sold! If it is not in move in condition and appealing, buyers just click on to the next home.

Excellent points Edward! Knowing your competition and being just a step above is essential to getting your property sold.

You are most welcome Bob! Tom's a great guy and puts out some quality blogs. I hope you get to know him if you haven't yet.

Thanks Gary! Here in WI a pool is actually a negative most of the time. No return on investment!

Hi Kristin, nope. I have been involved in a few huge projects and a lot of business. By the late hours I get home I am too exhausted to open the computer (unless of course I have showings and searches to set up)! ;-). I'm trying to do better and get into the rain a bit more. I miss everyone a lot! Not to mention I am missing out on posting a LOT of really good localism posts!

Jun 09, 2012 10:10 PM

You are right Anna, if you have time to enjoy the improvements it's not so bad! I don't know how many times I have heard clients say to me; "Oh if only we did this before we were ready to sell!"

Hee hee hee Tom, you thought I had forgotten all about this post didn't you? I didn't. I have been just so busy I haven't had the energy to open the computer! Anyhow, it was my pleasure. You create quality blogs, wonderful photo's and you have a great sense of humor. Why on earth wouldn't I suggest to folks go subscribe? Wishing you all the best!

Jun 09, 2012 10:20 PM

FAQ - What will my return on investment be?

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