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Don't Spend Big Money on Improvements
A good rule of thumb for improvements is if it costs you $2,500 to update your bathroom, you should see a market gain of $10,000 to justify the improvement. The philosophy to not spend big money on improvements to sell your home is really geared toward those major improvements that are purely cosmetic. "I recently had clients who had a home that needed in excess of $20,000 in updates to get in line with the competition in the area that was attracting the higher prices," said Jared Hoylo, Realtor at Remax. "The homeowners knew if they did the repairs they wouldn't get an $80,000 increase in value, and they elected to simply list below the competition by $10,000. The home sold within 25 days." With the price of improvements, the homeowner must consider the disruption to the household, cost overruns, and the general headache of dealing with the remodeling process. If a seller knows that an item is on its last leg, get bids from contractors before listing your home and be prepared for buyers to ask for a repair as a result of the inspection. The buyer always thinks improvements cost three times as much as they really do. These are the most bang-for-the-buck home improvement projects out there.