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Rainmaker
894,850
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Are they improving to make the property saleable because of deferred maintenance? Competitive with other similar properties that are not older or dated? Probably not. They need to check with tax person, and it depends on the kind of purchase and sale. But most people need to understand if they're improving for their own enjoyment that's not investing in the home. And they should not expect a return.

Nov 19, 2021 05:47 PM
Rainmaker
6,607,678
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Make the cosmetic improvements to make the property more attractive. Let the new owners finish the basement.

Nov 19, 2021 04:49 PM
Ambassador
2,570,942
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Granite countertops and shiny new appliances might increase the desirability for a buyer, but if it's a cookie cutter house in a subdivision, the value isn't going way up.

Nov 19, 2021 08:06 PM
Ambassador
4,258,081
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

If done properly, of course! Knowing what buyers want in any specific area is key - focus on 'beefing up' what needs to be improved. 

When managed properly, sellers in our area can easily achieve 200% ROI on improvements. 

Nov 19, 2021 07:43 PM
Rainmaker
645,458
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

This is one of the hundreds of reasons it pays to hire a Local Professional, Qualified Realtor.  The homeowner can learn which items are worth the money spent on any repairs, upgrades or changes to the inside or outside of the home.

Nov 19, 2021 04:20 PM
Ambassador
3,056,526
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Unless the tax laws have changed, money spent on improvements can be deducted from the gain(s).

Could certainly move the sale quicker. 

We include whatever we need to include to get the job done. 

We must also be mindful of the market and how buyers are responding in the market. 

Nov 19, 2021 03:27 PM
Rainer
116,868
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

Yes, it can be recaptured.  Is it always recaptured?  No.

The answer is a frustrating, "it depends."

Nov 20, 2021 05:14 AM
Ambassador
5,409,570
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

It really depends on how much is spent and which improvements are made.

Logic fails to play a part in so many areas of life.  Buyers are willing to pay extra for pretty places.

Agents dont complain because the commission gets a little bump with the extra value, and of course the tax man does not complain as they boost the assessment.

In the end the buyers and sellers both lose, while others pocket a few more coins.

Nov 20, 2021 12:17 AM
Rainmaker
454,579
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

Best place to invest for improvements are the bathrooms & kitchen this is where you get the best ROI.

Nov 20, 2021 05:16 AM
Rainmaker
743,412
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

It depends on the update that has been done and the market. It is important to many buyers as they want a house they can move into and start their lives right away. They are paying so much for homes these days that they do want a house that they don't need to put a lot of money in to. For some buyers, it is taking almost everything they have just to get into a house. With my buyers, the first thing we look at is age of roof and HVAC. Those are big ticket items some cannot afford to replace right away. Then there is flooring, the kitchen and bathrooms. Upgrade do traditionally help move a sale along as well. The icer the home, more over listing it and higher quantity of offers is what we're seeing.

Nov 20, 2021 05:11 AM
Rainmaker
4,210,549
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Sprucing and replacement of non-working appliances will help sell a house quicker. And since time is money, you come out ahead. As for major remodelling never. Let's say you put in gray cabinets and a prospective buyer likes white. You new cabinets have no value. Choose wisely.

Nov 20, 2021 04:18 AM
Rainmaker
1,387,323
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

ABSOLUTELY!  We make a good return on it, otherwise we wouldn't be flipping homes for 3+ decades and doing "Flip or Flop" style remodels for the last 14 years.

 

Top to bottom, stem to stern.  Anything that needs replacing gets it.  Floors, lights, ceilings, landscaping, garage doors, roofs, plumbing, electrical, removing walls, adding walls... you name it, we've done it.  Redesign kitchens and baths, expand and add things that were never there before.

Nov 20, 2021 10:12 AM
Rainmaker
821,972
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Depends on the market and on what's being done. In a tight market, it probably doesn't matter; in a slower market improvements expedite the sale. The return is variable, depending on the level of investment.

Nov 20, 2021 09:05 AM
Rainmaker
910,971
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

We find that many of our buyers are looking for turn-key houses which have modern and popular amenities. Counter tops in kitchen and bathroom, flooring, stainless steel appliances, interior and exterior painting, light fixtures, re-faced and repainted cabinets are among things that boost the home value. We urge changes that we know will return more than the money spent...otherwise, why spend the money to break even?

Of course, it depends on the individual house and seller.

Nov 20, 2021 07:38 AM
Rainmaker
889,027
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Recaptured?  You bet.
Within reason.
The dollars spent on paint is always recoupted plus.
Dollars spent of cleaning always recouped.
Dollars spent on turning a obsolecent floor contempoary..is money lost but DOES make it sellable.
Today, with supply issues, the crazy factor has not become a predictable factor that fits into a formula. Too often the seller and agent has to 'break eggs' and list at the "MAKE ME MOVE" price, hope it does not sell too fast (meaning priced too low) and adjust from there. IN such an environment, DOM becomes less relevant.
The correct response to many of the things you list is directly related to acquisition cost. A deep discounted Ugly Duckling merits a greater investment to get the Swan transformation. The occupant seller who has enjoyed the house for 30 years will not recoup investments that are not cosmetic.
My rule is you can not develop more that 15% above the community ceiling.

Nov 20, 2021 05:20 AM
Ambassador
3,272,961
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Yes absolutely if it's all done wisely. I have done hundreds of homes over the years and the point is to improve the ROI greatly! 

Nov 20, 2021 10:36 AM
Rainmaker
600,340
Ernie Steele
Berkshire Hathaway HomeServices Homesale Realty - Lebanon, PA
Call me, let's get started!!! 717-273-3774

I advise my sellers to not spend money on anything they don't really have to repair. As others have mentioned, "beauty is in the eye of the beholder". Don't replace carpet, the buyer may want a vinyl product. Don't paint, people can see past that and it raises questions about what was covered up (water stains on ceilings as an example). Service the heat and a/c systems, have an electrician and a plumber check for anything major, then sit back and see what shows up in the inspection.

Nov 20, 2021 09:08 AM
Rainmaker
376,839
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I think it can, especially if it opens the home up to a wider variety of buyers and if it makes those buyers feel like they can move right in and enjoy the home right away.

Nov 20, 2021 09:05 AM
Ambassador
4,580,116
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

That's one of those complex "it depends" questions - depends on what you do, the house, the local market, what buyers want, and more.

Nov 21, 2021 08:08 PM
Ambassador
3,479,613
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Owners pay for their homes in one of two ways. Either keeping it up during the time they own and enjoy their house. Or they "fix it up" when it is time to sell.

Nov 21, 2021 07:52 AM