Three in four homeowners would rather replace their appliances than accept a low offer.
New Study Suggests that Certain Upgrades Increase Home Value
According to a new study, Cinch Home Services found that a hefty majority of homeowners and renters, some 75%, believe that upgrading their appliances will increase their home value by nearly $14,000.
This thinking leads to over half of homeowners upgrading their appliances prior to putting their house on the for-sale market. Nearly 60% will replace/repair their air conditioner, nearly 46% will replace/repair their dishwasher and about 40% will consider replacing/repairing their water heater.
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Return on Investment is Key
Take a look at some of the following home updates that may, to repeat may enhance the valuation of your home:
- Kitchen Remodels: average cost of $75,000 that includes:
- Built-in microwave
- Dishwasher
- Custom lighting
- Cost Recoup: 57% or $43,000
- Garage Replacement: average cost of $4,000
- Cost Recoup: 75% or $3,000
- Stone Veneer: average cost of $10,400
- Cost Recoup: 92% of $6,600
- Minor Kitchen Remodel: average cost of $26,500
- Cost recoup: 72% or $19,000
- Sliding Replacement: average cost of $20,000
- Cost Recoup: 69% or $13,000
Renovations that May Be Beneficial
Some home improvements such as upgrading kitchen appliances or replacing flooring are considered “capital improvements.”
Even if the capital improvements an owner makes on her/his home don’t enhance the home’s value, the IRS allows homeowners to write off capital improvements when the house sells.
Likewise, if refinancing the home after making upgrades, the home will likely appraise at a higher rate than when the house was originally purchased. This new refinance valuation could mean an increase in home equity and lower loan-to-value ratio for the homeowner.
Bottom Line
With houses selling like hotcakes at record-high prices at the moment, homeowners may not need to do a thing to enhance the value of their homes. But, having a home shine brighter with upgrades never hurts.
Thanks to HousingWire.
