Ignore Roger and consider the following
fsbo rules before adding a deck to the home you plan to sell:
Rule 1:
If the house is in poor condition, improvements can increase the
sales price.
Rule 2:
A thousand dollars spent to improve a home that is in good
condition, seldom adds a thousand dollars to its sales price.
Rule 3:
Nothing adds value to a home like improvements to kitchens and
bathrooms.
Cost vs. Improvement in Sales Price:
The table below, from a recent
magazine survey, confirms our own observations. Typical home
improvement projects are listed on the left. On the right, is
the dollar amount added to a home's selling price for every
$1000 spent on the project.
| Project |
$ added to
price |
| Minor
kitchen remodeling |
$990 |
| Adding a
Bathroom |
$900 |
| Major
Kitchen remodeling |
$850 |
| Adding a
Family room |
$830 |
| Adding a
Deck |
$700 |
|
Replacing Windows |
$680 |
|
Replacing Siding |
$680 |
Reading the table:
- On average, a
person who spent $1,000 to add a bathroom, saw a $900
increase in the price of his home.
- The family who
spent $1000 to add a deck, saw a $700 increase in the sales
price of their home.
Bottom Line:
- Don't spend
money to improve a house you plan to sell unless the house
is in such poor condition that it cannot be sold without
improvements. For example: the house needs a new roof to
keep out the rain; or a modern bath with a shower.
- Improvements
might make sense if you can do the work yourself. If you can
add kitchen cabinets for $500 rather than $1,000, you can
still expect the $990 increase in the value of the home. On
the other hand, shoddy work on those kitchen cabinets can
reduce the value of your home.
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