Ask the Remodeler: Balance cost vs. value in home renovations

"Real Estate Buyers and sellers should consider different factors when it comes to investing money into their properties. Today's housing market has created quite a bit of havoc for both buyers and sellers. Both sides of the transaction are often not quite sure what to do and when to do it. Some buyers are starting to sit on the sidelines as the market has simply become too heated, and interest rates remain stubbornly high."

"There are several well-respected construction industry publications that agree most remodeling projects have a negative return on investment. That seems counter to people's expectations, but it's true. For people who are putting their homes on the market and want to "fix things up," the main thing to consider is curb appeal, not the kitchen and bath, since a new buyer may be ripping them out anyway."

"Obvious repairs need to be made, but a renovation of interior spaces isn't recommended. A fresh coat of paint, professional cleaning, and a properly staged interior (your listing agent will help with this) should suffice for interior preparation. Things like a new front door, garage door, power wash, and paint or a landscape makeover will recoup anywhere from 100 percent to 200 percent of your investment. These projects make sense since they will most likely help the home sell"

Today's housing market has created instability for buyers and sellers, as some buyers sit on the sidelines due to heated competition and persistent high interest rates. Many sellers hesitate to reduce asking prices because selling would require replacing low mortgage rates with much higher ones. Both buyers and sellers must weigh remodeling cost versus value when considering investments. Sellers generally face negative returns on most interior remodeling projects. Sellers should prioritize curb appeal and essential repairs, such as a new front door, garage door, power washing, painting, landscaping, cleaning, and staging. These targeted exterior improvements often recoup roughly 100 to 200 percent of costs and aid saleability.

Read at Boston.com