Should Sellers Upgrade Their Kitchen and Baths Before Selling?
In considering what a number of Buyers expect to find in the homes they want to purchase in 2016, it is often discussed that if Sellers would upgrade their Kitchens and Baths, they would more likely qualify for the higher prices they expect to receive on their property. Of course there is a catch to that, it will cost in the neighborhood of $40,000 to $50,000 to get their price. It would also be of interest that if you spend that much, maybe $25,000 to $30,000 actually goes to increase the home value.
Most home sellers don't fully understand why the entire outlay does not add to the home's value. The simple answer is in appraisal, a home has to have a Kitchen to be considered suitable for occupying. That means it has to have the basics that make up a Kitchen. A stove or cooktop, a sink and water supply, some cabinet space, etc. Just like a home needs a roof. The roof may have simple shingles or be a flat roof, it may not be upgraded to clay or cement tile, but there has to be a roof. In other words, upgrades that go beyond the basic definition of a Kitchen, is all that counts as increasing the capital value.
So why is it that upgraded Kitchen and Baths are so often recommended to Sellers wanting to obtain the highest price. Because Buyers are attracted to a home that has been professionally upgraded in the key areas of the kitchen and Baths. When showing homes that have been improved, you will also note that Buyers tend to be more accepting of other home features or lack there of that may not be a perfect fit.
Yesterday, I had a call from a past client of 11 years ago and it is time to sell the home. I asked about improvements and then asked about the Kitchen and Baths. We will be meeting next week to determine if upgrading those areas specifically will greatly increase the overall desirability of the property and what the cost vrs value will be for the upgrading. I mentioned that I was just posting about this in my blog and and they reminded me why they would never consider anyone else to handle their property.