What home renovation yields the best ROI before selling in 5 years?

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  • #95405 Reply

      We live in an older home that needs some renovations. What would be the ranking for the best ROI? Keep in mind we will be moving in about 5 years.

      1. New roof
      2. New kitchen
      3. New garage door
      4. New Deck
      5. New Furnace
      6. New Windows
      #95406 Reply

        Only do the windows, roof or furnace if they are NEEDED. Otherwise leave them and offer a home warranty as part of the sale. Do whichever thing would make someone really flinch cosmetically in the kitchen, garage door, deck, department.

        #95407 Reply

          Roof, furnace, deck only if you need it.

          New kitchen would bring the most ROI. The garage door is for curb appeal- don’t think it brings any ROI.

          New windows would help with your utility bills if it’s not already double pane windows.

          #95408 Reply

            It’s highly dependent as real estate is highly local. Me personally?

            I don’t fix a thing. Not a damn thing. First, these things don’t produce a positive ROI so you are I guess looking for the best of negative ROI.

            Second, I have no interest in locking in my time, my expense, my worry for someone I don’t know and have the trust between us that is entirely based upon some small amount, and often far less than request repairs, of earnest money which is held by their agent and is a total pita to get should I feel I am due it.

            If a buyer wants something repaired or feels there is a near future risk they are unhappy to accept, ok I understand and based on any other offer I have from other buyers I will decide an amount to simply give them in the sale transaction.

            Here is $3k or $5k so you can fix what you want, when you what, how you want, with the contractor you want….while I am gone gone gone and no longer care.

            Now again real estate is hyper local and maybe my general market has supported my way of doing things but they would never work in your market.

            Good luck with your market and your plan.

            #95409 Reply

              There is no ROI. These are all expenses. Don’t do any of them if the goal is ROI, especially on that time frame.

              #95410 Reply

                This is not a smart approach. Replace only what is needed and that you personally want to for your own happiness if you are moving in 5 years. It will still be a ridiculous sellers market in a few years and buyers may not care as much about the windows, garage door, etc as they do about just getting the winning bid on a house.

                Larger things like kitchen renos and windows will not add nearly as much value as it costs to complete/install.

                I’d focus more on inexpensive curbside appeal and leave it to the buyers to ask for concessions at the time of the sale.

                #95411 Reply

                  I think it depends why you’re replacing those things. If it’s because the roof is leaking and the furnace has had problems functioning, I’d do those two first. If the windows are leaking then I’d prioritize those as well.

                  If the decks are your second means of egress, then I’d do that next (realizing that decks can be a big, expensive project– we need to replace ours and just the permitting will take like a year.) If the decks are in really bad shape though and are your second means of egress, you should probably bump that up your list.

                  If it’s just an aesthetic thing though, I’d put that at the bottom of the list along with the kitchen.

                  #95412 Reply

                    Do the roof for sure, furnace too. The rest is your discretion. But what if you don’t move in 5 years? Are you willing to take that risk? If you do the other updates in 5 years, then you will pay way more than today.

                    #95413 Reply
                    La Vita

                      I see the ownership period more like stewardship period, and for me ROI is not just the dollar multiplier but also knowing that I sold the house in a good state and in a better shape than I bought it. From this standpoint, roof goes first, then furnace and windows.

                      I’m on the market for a new house and houses with nice decks get like ten offers.

                      #95414 Reply

                        Depends on roof and furnace age. If it’s like 10-15 years, I’d leave alone.

                        But if the roof is 20+ years, then you might need to replace in order for new owners to get insurance.

                        I wouldn’t replace anything not necessary, especially in the kitchen.

                        Kitchen trends can easily shift in 5 years.

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